The federal government is sitting on the third-largest budget surplus in history, but it is expected to shrink through the final month of the financial year before plunging back into the red.
The figures suggest extra spending across several key areas has to flow across the economy this month. Total personal income tax collections, which account for almost half of government revenue, were $2.2 billion behind expectations at the end of May. GST and other consumption taxes are now $500 million behind forecasts.However, company tax is $2.6 billion ahead of expectations while superannuation taxes are now almost $600 million stronger than expected.
Separate figures from the Australian Office of Financial Management showed total government debt ended the financial year at $906.9 billion, compared with original expectations of more than $1.1 trillion.