Australia Parliament
The government claimed that 87% of revenue increases were put back into the budget. Pixabay

The federal government announced a surplus of AU$15.8 billion for the 2024 financial year, which was AU$6.4 billion more than the AU$9.3 billion surplus forecast in May, and attributed the achievement to low spending.

It's the second year in a row the government has achieved the surplus, with the double surplus happening for the first time in twenty years, ABC News reported.

Besides low spending, the government stated strong commodity prices and a larger income tax as contributing to the two consecutive surpluses. The government also saved by paying less to the states and territories.

However, Treasurer Jim Chalmers admitted that a weak labor market could impact next year's budget that may end up being in deficit.

"We're not complacent about the fiscal challenges that we confront. Some of them are intensifying rather than easing," Chalmers said.

In the past two years, government spending has mostly focused on easing the high cost-of-living pressures to avoid adding to the persistent inflation. The Reserve Bank of Australia had forecast a "slightly expansionary" spending on the part of the government despite the inflation staying higher than 2-3%.

The government claimed that 87% of revenue increases were put back into the budget.

Compared to the forecast in the official Pre-election Economic and Fiscal Outlook (PEFO) in 2022, the budget has achieved a cumulative AU$172.3 billion, The Conversation reported.

Based on the final budget outcome, net debt is AU$491.5 billion at the end of the financial year, slightly less than AU$517 billion in 2022 when Labor assumed power.

The government also stated to have saved AU$77.4 billion, including AU$12.2 billion in 2023-24. Payments were 25.2% of GDP in 2023-24, lower than the PEFO forecast of 27.1%.

Finance Minister Katy Gallagher said, "Posting back-to-back surpluses is a key part of our plan to take pressure off inflation while providing relief to families, who we know are under pressure."