FX.co ★ Australia Posts Budget Deficit in FY2024/25

Australia has reported a budget deficit of just under A$10 billion (around $6.55 billion), equating to approximately 0.4% of GDP, for the fiscal year ending June 2025. This development, announced on Sunday, marks a shift from two consecutive years of budget surpluses. According to the government's statement, the deficit was notably lower than the A$27.9 billion forecasted earlier this year by the Treasury and the Finance Department. The government attributed this improved fiscal performance to enhanced banking revenue, stringent spending controls, and strategic cost savings. “This serves as a reminder that we hold one of the most robust budgets within the G20,” stated Treasurer Jim Chalmers, as highlighted by Reuters. Previously, Australia had achieved a budget surplus of A$15.8 billion for the year ending June 2024, following a surplus of A$22.1 billion for the year ending June 2023—representing the country's first budget surplus in 15 years.