CANBERRA, Dec. 17 (Xinhua) -- Updated budget forecasts released by the Australian government on Wednesday showed that the federal deficit for 2025-26 will be 5.4 billion Australian dollars (about 3.6 billion U.S. dollars) lower than previously projected.
The annual Mid-Year Economic and Fiscal Outlook (MYEFO) handed down by Treasurer Jim Chalmers and Katy Gallagher, the Minister for Finance, projected an underlying cash balance deficit of 36.8 billion Australian dollars (about 24.4 billion U.S. dollars) at the end of the current 2025-26 financial year, down from the 42.2 billion Australian dollars (about 28 billion U.S. dollars) forecast in April.
According to the MYEFO, Australia's gross debt will hit 993 billion Australian dollars (about 658.2 billion U.S. dollars) by the end of the current 2025-26 financial year, 29 billion Australian dollars (about 19.2 billion U.S. dollars) lower than projected in April.
The Treasury has increased its forecast for inflation over the 12 months to June 2026 to 3.75 percent from 3.0 percent it projected in April.
The most recent data from the Australian Bureau of Statistics showed that annual inflation rose to 3.8 percent in October.
A joint statement issued by Chalmers and Gallagher said that the recent spike in inflation has been "partly driven by temporary factors" and that the Treasury expects inflation to return to the 2-3 percent target band in 2026-27. ■