Federal budget surprises

The Federal government’s accounts are in better shape than it expected, when the Treasurer, Wayne Swan, delivered his budget in May.

Mr Swan said the final underlying cash deficit, of $27.1 billion, is $5 billion better than he had expected at budget time.

He said cash receipts had been $2.8 billion higher than expected while government spending had been $2.2 billion lower.

Company tax receipts had been $3.6 billion higher than expected, but that had been offset by a $500 million shortfall in personal income tax revenue.

Mr Swan said the government’s net debt, at the end of June this year, had been $16.1 billion, a level $11.5 billion lower than the budget forecast.

The Treasurer said Australia’s net debt – at 1.3 per cent of gross domestic product – is “dramatically better” than those of other advanced countries.

Their net debt, collectively, stood at 59 per cent of GDP, Mr Swan said.

But he said the Rudd government is still committed to returning the Federal budget to surplus as the economy recovers.