CANBERRA, Sept. 28 (Xinhua) -- Australia's budget deficit at the end of the 2025-26 financial year came in 6 billion Australian dollars (4.2 billion U.S. dollars) lower than previously forecast, Treasurer Jim Chalmers said on Monday.
Chalmers and Finance Minister Katy Gallagher on Monday released the final budget outcome for 2025-26, showing an underlying cash deficit of 22.3 billion AUD (15.7 billion USD), representing 0.8 percent of GDP, at the end of the financial year on June 30.
The federal budget for 2026-27 handed down by Chalmers in May projected an underlying cash deficit of 28.3 billion AUD (19.9 billion USD), or 1.0 percent of GDP.
Chalmers told reporters that the improvement was driven by higher investor income and lower government spending than previously forecast by the Treasury.
The final budget outcome was released as the Reserve Bank of Australia's Monetary Policy Board on Monday began a two-day meeting to consider raising interest rates.
Australia's 'Big Four' banks have unanimously predicted that the board will on Tuesday raise the cash rate target from 4.35 percent to 4.6 percent, which would be the highest level since November 2011.
Chalmers said on Monday that Australians would be apprehensive about the board's deliberations, but said that inflation is primarily being driven by the conflict in the Middle East rather than government spending. ■
