Australia’s Budget deficit slashed and surplus expected for first time in 11 years

The Federal Treasurer says it’s “no accident” the budget will soon be back in the black.

The Mid Year Economic Update shows the Coalition is on track to deliver a bigger than expected $4.1b surplus next financial year.

This is mainly because companies have been paying more tax, while spending has been reigned in.

Josh Frydenberg says the figures are proof the government’s economic plan is working.

“Today’s strong budget update is no accident,” Mr Frydenberg said in Canberra this morning.

“It’s the product of hard earned gains over more than five years.”

The Government will deliver a deficit of $5.2 billion, $9.3 billion lower than forecast at the time of the May Budget.

Next year the Budget is expected to move into surplus, for the first time in 11 years.

MYEFO shows budget on track to return to a $4.1 billion surplus next financial year, despite softer than expected economic growth #auspol @2GB873 @3AW693 @NewsTalk4BC @6PR @1395FIVEaa

— Roshai Murdoch (@roshaimurdoch) December 16, 2018

Click PLAY below to hear Mr Frydenberg on 3AW Drive

Image: Sky News