The govt's budget will 'broadly be in balance'

The Australian’s economics editor Adam Creighton says the government’s budget will “broadly be in balance”.

Economists warned the government's promised $5 billion surplus has potentially been wiped out by the impact of the coronavirus and bushfires.

The recent crises have constrained revenue and forced the government to increase spending with the bushfires alone expecting to cut economic growth by 0.2 per cent.

Mr Creighton told Sky News the first six months of this financial year have been “very good for the government” with the iron ore, coal price “very high”.

“This second month period of course will be less good but it may not outweigh the first six months," he said.

Image: News Corp Australia

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