Oliver’s Insights: Australian budget – back to surplus, the great fiscal switch

The 2012-13 Federal Budget is about one thing: returning the budget to surplus on schedule and doing it in a way that minimises the negative impact on the economy and doesn’t alienate the Government’s key constituency of low to middle income voters.

And this is what the Government has done.

The Budget is projected to be in surplus to the tune of $1.5bn – wafer thin but still a surplus. The main issues relate to the economic impact: is returning a surplus good or bad for the economy and what does it mean for interest rates? To read the full report, click here.