To assess Australia’s fiscal sustainability and budget challenges it is important to look at the budget position of not only the Commonwealth but also states and territories. This report examine the revenue, expenditure, net capital investment, net financial worth and the net debt position across all levels of Australian government over the forward estimates period. Providing an update to the national fiscal outlook based on Commonwealth and state government budget updates.
Overview
- Budgets optimistic following better-than-expected initial recovery from COVID-19. With all state and territory 2021-22 Budgets now released, together they depict an Australian economy which recovered swiftly in the wake of the initial outbreak of COVID-19, exceeding most expectations.
- Compared to our previous outlook in February, estimates for most aggregates improved for 2020-21 and later years.
- Despite the initial recovery, the Delta variant of COVID-19 has forced most Australian capital cities into further lockdowns, prolonging the period of recovery from the pandemic.
- The initial recovery from the pandemic in late 2020 and early 2021 was better than expected at the previous outlook, with the national net operating deficit across all governments estimated at 8.3 per cent of GDP ($171 billion) in 2020-21 at the time of the 2021-22 Budgets—significantly smaller than was forecast following the last outbreak.
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For further information:
2021-22 National fiscal outlook: At a glance
A complementary product, the 2021-22 National fiscal outlook: At a glance, provides a graphical snapshot of the Commonwealth, state and territory budgets in addition to the national aggregates.