Australia Budget Will Return to Surplus

Australian Finance Minister Mathias Cormann says the Turnbull government will get the budget back to surplus as soon as possible but won’t lock itself into an artificial deadline.

“We need to make decisions that are both fiscally and economically responsible. Based on the numbers in the budget a return to surplus is forecast, is projected for 2020/21,” Senator Cormann told Sky News on Sunday.

He and Treasurer Scott Morrison will hand down the midyear budget review on December 19.

Last week, new national accounts showed the economy contracted by 0.5% in the September quarter, its first decline since March 2011.

He also rejected the suggestion the Australian economy could be in recession and won’t be pursuing stimulus spending in the upcoming mid-year budget review.

Cormann said he was not anticipating the fourth quarter national accounts will show a consecutive negative result which would constitute a technical recession. “I completely reject your proposition that we are in a recession right now, that is just false,” he said.

Cormann also said the review of the Turnbull government’s climate change policies was mere “housekeeping”. “It’s always good practice, it’s always good housekeeping to look back at what you’ve done and the way you’re doing it to ensure you’re giving your policy settings the best possible chance to be successful,” he said.