The final budget outcome for the 2008-09 year was a deficit of $27.1 billion, the Federal Government has revealed.

This was a $5 billion improvement on the $32.9 billion deficit forecast in the May budget and marked a "tentative step forward" for the nation's economy, Treasurer Wayne Swan said.

The better-than-expected result reflected lower than anticipated spending of $2.2 billion and higher cash receipts of $2.8 billion.

In a nutshell: the 2008-09 budget outcome



In a statement released today, Mr Swan said the outcome was the result of a number of factors.