SYDNEY (Reuters) – Australia’s government on Sunday said it expects federal budget revenue increases to be smaller than in recent years for the year ending June 30, citing a weak global economy and a slowdown in the domestic economy. Announced.
The Labor government is expected to report a budget surplus on May 14, but predicted in March that revenue growth would be weaker than last year due to falling commodity prices and a weakening labor market. It was showing.
The committee said on Sunday that tax revenue increases in the budget, excluding the goods and services tax, are expected to be more than A$100 billion ($66.08 billion) lower than the average increase of A$129 billion in the previous three budgets. announced.
It said the expected results were due to a weak global economy, a slowing domestic economy, a softening labor market and falling commodity prices.
Finance Minister Jim Chalmers said in a statement: “We are realistic about the challenges facing our economy and budget, including that we do not expect the large revenue increases seen in the recent budget update to continue. “This includes things that have not been done.”
Mr Chalmers previously pointed to falling commodity prices, particularly the key export iron ore, and rising unemployment as the main drivers of the change. Australia’s unemployment rate hit a two-year high of 4.1% in January.
He warned in April that events in the Middle East were raising concerns about the global economy and that the government’s budget would be decided in May.
($1 = 1.5133 Australian Dollar)
(Reporting by Sam MacKeith in Sydney; Editing by Christian Schmollinger)