Final figures show last year's budget deficit $543m lower than expected

Updated

The Federal Government has released new figures showing last year's budget deficit was more than $500 million lower than expected.

The Final Budget Outcome shows the underlying cash deficit was $18.8 billion for the 2012-13 financial year, an improvement of $543 million compared with the May budget estimate.

Despite the better-than-expected figures, Treasurer Joe Hockey pointed out that Labor had forecast a surplus for 2012-13 when it handed down its budget in 2012.

"They promised to have a surplus on over 500 occasions. Today the truth is out. It is a deficit of $18.8 billion and it's rising," Mr Hockey said.

The previous treasurer, Wayne Swan, walked away from the surplus commitment last December, blaming a massive fall in revenue.

The figures show total government receipts were $642 million higher than forecast, mainly due to higher revenue from company tax and the GST.

Net debt was $153 billion - 10.1 per cent of GDP - which was $8.6 billion lower than estimated in the May budget.

Mr Hockey has warned the budget position is worsening but he would not elaborate.

"It's not a significant deterioration but it is a deterioration," he said.

"Please do not assume these numbers are relevant to the state of the books we have inherited today."

The next economic update, the Mid-Year Economic Fiscal Outlook (MYEFO), is due by the end of January but there is speculation the Coalition will delay its release until after Christmas.

Today Mr Hockey would not be drawn on the timing.

"I will release the Mid-Year Economic and Fiscal Outlook in good time," he said.

"I don't want to be in a position that our predecessors from the Labor Party found themselves in, where they were continually releasing numbers and the numbers continually changed.

"If we release a set of numbers, we want to make sure they are absolutely right and there will be some variability."

Bowen claims a growing culture of secrecy

Acting Labor leader Chris Bowen is calling on Mr Hockey to follow convention and release the MYEFO before the end of the year.

"This is not transparency, and it's part of a growing and clear culture of secrecy in the Abbott Government," he said.

"If there's a budget emergency in Australia as Mr Hockey and Mr Abbott have previously claimed, they should be upfront about the situation and what they intend to do about it."

Mr Bowen says the Final Budget Outcome is virtually identical to the economic statement Labor released just before the election, and that it is dishonest of Mr Hockey to claim today's figures are a revelation.

"I take credit for outlining these figures before an election. Mr Hockey cannot come out and say the situation is worse than we thought," Mr Bowen said.

"What he's done today by trying to paint this as a deterioration in the budget deficit when it is not, is try to create an alibi for further cuts to come."

Hockey tones down budget emergency talk

In Opposition, Mr Hockey consistently claimed Labor had lost control of the budget and said Australia could not afford another six years under Labor.

Today, his language was far more toned down and there was no mention of an emergency.

Mr Hockey says his priorities are dealing with the challenges of government debt, axing the carbon and mining taxes and shutting down the Clean Energy Finance Corporation.

"My dance card is pretty full at the moment," he said.

Mr Hockey says Treasury has advised him that Australia is on track to reach its debt ceiling of $300 billion before Christmas.

Raising the debt limit will require legislation and Mr Hockey says the new government will have to deal with it once Parliament resumes.

Topics: budget, government-and-politics, business-economics-and-finance, federal-government, australia

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