The dramatic transformation of Australia’s fiscal landscape by the COVID-19 pandemic has been confirmed by the latest round of state and territory budgets for New South Wales (NSW), Victoria (VIC), Queensland (QLD), South Australia (SA) and the Northern Territory (NT). Their collective shares of GDP cover some 85 percent of the national economy. Western Australia, Tasmania, and the Australian Capital Territory will keep us in suspense until late August, but we already know broadly where their budgets are heading from previous announcements. Currently, certain themes have become apparent. Budgets for the financial year ending today have improved from the original estimates thanks to the strong economic rebound, more tax revenue and, to a lesser extent, government spending shortfalls. Nonetheless, net operating balances remain deeply in deficit. These deficits are predicted to narrow from here on, and in the cases of NSW, QLD, and SA, to reach smaller surpluses by the …