SYDNEY (Reuters) – The Australian government’s budget will show a decline in projected gross debt this year and forecast a lower peak in debt ratios in the years ahead, the Treasury said on Monday.
The government’s gross debt is expected to come in at A$904 billion ($598.54 billion) for the year ending June 2024, A$152 billion lower than projected by the previous government before it lost an election in 2022, according to an extract of the budget due to be released next Tuesday, seen by Reuters.
That will save around $80 billion on interest payments over the next decade, with gross debt now expected to peak at 35.2% of the gross domestic product in the 2026-2027 year, lower and earlier than the previous estimate of a peak of 35.4% in 2027-2028.
“Because of our efforts, debt in next week’s budget will be much lower than was budgeted for by our predecessors,” Treasurer Jim Chalmers told a press conference on Tuesday.
Chalmers is expected to deliver a second budget surplus on May 14, the first back-to-back surpluses in almost two decades.
($1 = 1.5103 Australian dollars)
(Reporting by Stella Qiu and Alasdair Pal; Editing by Sonali Paul)
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