The shrinking deficit

Treasury have released the financial statements for the 11 months to May 2013. The operating balance before gains and losses (obegal) was a $3.3 billion deficit.

The 2012 Budget forecast a $7.8 OBEGAL deficit for the current financial year. It is now looking to be much much less than that. That’s a really promising sign that the economic recovery is strengthening and that the inherited structural deficit will be gone in the next two years.