As MB readers have known for many months, the surplus is long gone. Now Treasury says so too. From the AFR:
Federal Treasury is advising the government to dump its commitment to a budget surplus as a slump in Australia’s nominal growth rate poses a threat to revenue.
Treasury’s position reflects the views of many business figures and market economists who in recent months have dropped their support for getting the budget into surplus this year because of concerns that it could weaken the economy.
…Sources say the government is still desperately hoping “something will turn up” to allow it to keep its surplus commitment.
It has ordered bureaucrats to search for new savings that, in the remaining months of the financial year, offer the prospect of filling any budget hole. The measures would have to be announced in an early 2013 mini-budget.
Anothery!
