The Australian Government has released the 2023‑24 Mid‑Year Economic and Fiscal Outlook (MYEFO).

The mid-year update forecasts a much smaller deficit of $1.1 billion in 2023‑24. This is an improvement of $12.8 billion compared to the May Budget.

The mid‑year update shows that the Government has returned 92 per cent of upward revisions to revenue since the May Budget, and identified a further $9.8 billion in savings and reprioritisations.

Over the four years to 2026–27, the underlying cash balance is forecast to improve by a cumulative $39.5 billion relative to the May Budget.

Gross debt as a share of GDP is expected to peak lower at 35.4 per cent of GDP in 2027‑28, before declining to 32.1 per cent of GDP by the end of the medium term.

The economy is expected to expand by 1.75 per cent in 2023–24 before regaining momentum in 2024‑25.

The 2023-24 MYEFO can be accessed here.

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