Sunday 26 June 2022 05:39 AM Iron ore and commodity prices halved Australia's budget deficit trends now
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Treasurer Jim Chalmers says the marked improvement in the budget is partly a reflection of the 'quite extraordinary' prices Australia is getting for its commodities.
The monthly financial statement released by the Department of Finance on Friday shows the underlying budget deficit was $33.4 billion in May compared with the $60.5 billion that had been expected after 11 months of the 2021/22 financial year.
A deficit of $79.8 billion was forecast for the full year in the March budget.
Treasurer Jim Chalmers (pictured) claimed the budget improvement was partly due to 'extraordinary' commodity prices
'Obviously, we want those numbers to come in strongly,' Dr Chalmers told the ABC's Insiders program on Sunday.
'But what they don't take into account is the volatility in our commodity prices. I think iron ore dropped 12 per cent last week, and that has implications for the budget.'
In a tweet, shadow treasurer Angus Taylor boasted the strong budget result was due to the strong economic management of the coalition government.
'Interesting that Labor
