The Australian federal budget for 2024 projects a slight surplus of $9.3 billion but anticipates significant deficits in the following years, with a $28.3 billion deficit projected for the next year and a $42.8 billion deficit the year after. Announced by Treasurer Jim Chalmers, the budget marks the first back-to-back surplus since the 2007-08 period. The anticipated deficits are higher than previous forecasts, with increased government spending expected to stimulate economic growth without adding to inflation. The economy's growth is underpinned by a 1.75% GDP increase expected for this year and 2% for the 2024-25 fiscal year, driven by public demand.
The budget also includes a cost-of-living package with a $3.5 billion energy rebate and increased rent assistance but does not raise JobSeeker payments. Chalmers highlighted the government's focus on managing inflation, with the Reserve Bank of Australia expecting a decrease in inflation to target levels by the end of the year. The budget includes forecasts for decreases in raw material prices and maintains a conservative outlook on commodity prices.
Additionally, the budget outlines increased spending in areas such as palliative care and cancer support, deemed necessary expenditures by Chalmers. Financial relief measures, such as increased Commonwealth Rent Assistance, aim to assist nearly one million households amid Australia's ongoing rental crisis. However, calls for substantial increases to JobSeeker payments were not addressed, despite recommendations from an economic advisory committee. Overall, the 2024 budget aims to balance economic growth stimulation with inflation management while addressing urgent social welfare needs.