Australia’s Pre-Election Economic and Fiscal Outlook (PEFO)

Australia’s Pre-Election Economic and Fiscal Outlook (PEFO) is out now, with no noticeable change seen as compared to the May 3 budget.

Key Details:

2015-16 underlying cash balance: A$40.0 bln vs Budget -A$39.9 bln

2016-17 underlying cash balance: A$37.1 vs Budget -A$37.1 bln

2017-18 underlying cash balance: A$26.1 bln vs Budget -A$26.1 bln

From PEFO, “In our best professional judgment, the economic and fiscal outlook for the Commonwealth has not materially changed since the publication of the 2016-17 Budget on 3 May 2016. While there has been recent movement in several economic indicators (including commodity prices, market interest rates and foreign exchange rates), these indicators can be volatile and our judgment is that these do not reflect a material change. As such, the fiscal projections published in the 2016-17 Budget provide a solid platform for decision making about the budget trajectory, including over the medium term.”