Treasurer explains why surplus projections have been slashed

The promised $7 billion surplus for this financial year has been revised to $5 billion.

A combination of low wage growth, tumbling GST receipts, bushfires, drought and a weakening global economy have all been blamed.

The downgrades are far more dramatic in future years, when the surplus predicted by Treasury has halved by 2023.

“There’s no doubt that the Australian economy, like many other economies around the world, is facing a number of significant challenges,” treasurer Josh Frydenberg told 3AW Drive.

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