Australia sees government debt to fall from March peak

Australia's national debt is expected to fall from its peak this month, with figures more favorable than those anticipated when the Labor government took office. This information will be detailed in the upcoming National Budget Report, which is due to be released on Tuesday. Treasurer Jim Chalmers hinted that the Australian Treasury could see a modest increase in its revenue in March 2025.

Economists surveyed by Bloomberg predict the fiscal report will show an underlying cash deficit of A$40 billion (almost $25.1 billion) for the 12 months to June 2026. This is an updated figure from previous calculations that had estimated a higher deficit of A$46.9 billion ($29.5 billion). 

In light of the budget release, Chalmers has pledged to provide significant support to households struggling with rising energy prices and escalating healthcare costs. 

According to the latest government data, the national debt is likely to reach A$940 billion ($590.9 billion), which is equivalent to 37% of the country's gross domestic product (GDP) for the current fiscal year.