What to expect from today's Aus Federal budget mid-year update? - Westpac

Today's Australian Federal Government's Mid-Year Economic and Fiscal Outlook, due at 1.15 GMT, is expected to confirm the broad profile for the budget balance, as set out in the May Budget, according to Westpac.

Key Quotes

On the economy: forecast nominal GDP growth for 2017/18 is likely to be upgraded to 4.5% from 4.0% at Budget time, on upside to commodity prices; while real GDP growth is on track for the forecast 2.75%. For the out years, the economic forecasts are likely to be little changed.

The stronger starting position for the economy boosts revenues, while a likely small undershoot on expenditures could be used to fund modest new initiatives. • On our figuring, the forecast budget deficit for 2017/18 is $2.4bn smaller, at $27.0bn vs $29.4bn at budget time.