Fiscal outlook

In recent years, government spending has ballooned and debt has risen sharply. The coalition Government is committed to getting the books back in order. Despite worsening economic conditions, the Government is on track to meet its fiscal objectives of:

• returning the operating balance to surplus (before gains and losses) in 2027/28
• bringing much-needed discipline to government spending, including by reducing core Crown expenses towards 30 per cent of GDP
• stopping the increase in net core Crown debt, then reducing it to between 20 per cent and 40 per cent of GDP.

Total Crown operating balance (before gains and losses)

 

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Net core Crown debt