Improved economic conditions helped to deliver a better than expected budget deficit, according to Treasurer Wayne Swan.
Swan has today released the final figures for the 2008-09 budget, which put the deficit at $27 billion instead of the $32 billion forecast in May.
Swan described the figures as a “marginally better outcome”, but was quick to point out the effects of the global downturn are far from over.
“The numbers today do give us a tentative step forward since the most recent forecasts in the May Budget of this year. But of course the global recession meant that we started a long way behind,” he said.
He reiterated that the global crisis would continue to hit future budgets with the effects to be felt for “some time to come”.
Swan attributed the stronger than expected outcome to a number of one-off factors and the effects of the stimulus spending.