The federal budget deficit forecast for this financial year has been slashed to just $1.1bn, all but guaranteeing Treasurer Jim Chalmers will deliver back-to-back surpluses. In a move designed to ease inflationary pressures, the Mid-Year Economic and Fiscal outlook (MYEFO), released on Wednesday, shows revenue windfalls will be banked rather than spent, so that additional demand is not added to the economy. The mid-year update revealed a staggering $12.8bn improvement to the 2023-24 budget with soaring commodity prices and low unemployment fuelling bumper tax receipts. In May, Dr Chalmers forecast a deficit of $13.9bn for the…
