05 October 2022
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
- With all state and territory 2022-23 Budgets now released, the Parliamentary Budget Office (PBO) has consolidated the forecasts from these budgets with the Australian Government's budget – released in March 2022 – to provide an aggregated outlook for the national fiscal position.
- Together, the budgets reflect an economy that is continuing to rebound from the COVID-19 pandemic, despite the war in Ukraine and other international events, natural disasters and supply chain issues. The stronger-than-expected economic recovery has improved the National fiscal outlook (NFO) compared with our previous NFO in December 2021.
- National net debt has been revised down over the forward estimates, partly owing to revaluations due to higher interest rates (see Box 1). However, the cost of issuing new debt has increased, despite expected deficits being smaller than previously forecast.
- Overall, the fiscal position remains sustainable, but risks remain, particularly the implications of higher inflation and interest rate expectations.
Download the full report above.
Supporting material
For more information:
2022-23 National fiscal outlook: At a glance
A complementary product that provides a graphical snapshot of each of the Commonwealth, state and territory budgets.