The Australian federal budget improved considerably in May due to the extraordinarily high prices of the country’s commodities.
In the latest monthly financial statement released by the Department of Finance, the underlying budget deficit reached $33.4 billion (US$23.11 billion) in the month, much lower than the $60.5 billion previously predicted in the 2021-2022 Revised Budget.
“Obviously, we want those numbers to come in strongly,” Treasurer Jim Chalmers told the ABC’s Insiders program.
“But what they don’t take into account is the volatility in our commodity prices. I think iron ore dropped 12 per cent last week, and that has implications for the budget.”…