Breaking News
Get 40% Off 0
🔎 See NVDA's full ProTips for an instant risks or rewards Claim 40% OFF

Australia budget to trim forecast for cost of servicing debt for next three years

Published May 04, 2023 08:47AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Australian dollars are seen in an illustration photo February 8, 2018. REUTERS/Daniel Munoz

By Lewis Jackson

SYDNEY (Reuters) - Australia has lowered its forecast for the cost of servicing government debt over the next three years, though the government still sees annual repayments rising to a peak in fiscal 2025/26 before declining slightly.

Interest payments on Australian government securities are forecast to total A$85.8 billion ($57.18 billion) between fiscal 2022/23 and 2025/26, according to an extract of next Tuesday's budget seen by Reuters. Similar figures last October totaled A$95.7 billion over the same period.

Record prices for commodities, the lifeblood of the Australian economy, will help Treasurer Jim Chalmers pay for tax cuts, interest bills, and more spending on childcare and health, when he presents a budget next Tuesday. The reduced forecast for debt servicing will provide additional breathing room in the budget.

"The cost of servicing the debt left behind by our predecessors is one of the fastest growing pressures on Tuesday’s Budget," Chalmers said on Thursday.

"We’ve made substantial progress when it comes to repairing the Budget and we’ll continue our efforts in the Budget."

(GRAPHIC - Breathing room: Australia's rising debt bill moderates: https://www.reuters.com/graphics/AUSTRALIA-DEBT/egpbybxdqvq/chart.png)

Interest payments are forecast to rise steadily to a peak of A$27.1 billion in fiscal 2025/26, up from A$17.7 this fiscal year. Payments are then forecast to dip to A$26 billion in fiscal 2026/27.

The total cost over the five years is set to be A$112 billion, more than the government spending on infrastructure or childcare, according to the same budget extract.

($1 = 1.5006 Australian dollars)

Australia budget to trim forecast for cost of servicing debt for next three years
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email