Federal Treasurer Jim Chalmers said strong iron ore and coal prices helped reduce Australia’s budget deficit for the past financial year by around $50 billion.
In a preview of the federal budget due in full next month, he also said he believed most of the improvement was only temporary.
Chalmers doesn’t see a similar boost coming, with October’s benchmark iron ore on the Singapore Stock Exchange falling more than 15% since August 1.
“We wanted to be upfront with people about what we’re seeing in the final budget numbers as they settle in,” Chalmers said during a press briefing.
“The government in March forecast a budget deficit of $79.8 billion for the year ending June 30, 2022. This will now remain north of $30 billion.”
Amid an expected hike of around 25 cents per liter on petrol, Chalmers said Australia would support efforts by the G7 group of countries to impose a price cap on Russian oil.
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