The Parliamentary Budget Office’s (PBO) 2025–26 National Fiscal Outlook shows that Australia’s combined national fiscal position has worsened compared to 2024, with deficits persisting across most jurisdictions, rising debt levels, and limited fiscal space for new spending. The report consolidates Commonwealth, state, and territory budgets to provide a whole-of-nation view of fiscal sustainability.
The aggregated fiscal outlook across all levels of government has deteriorated since the last edition in October 2024. This reflects weaker budget aggregates in most jurisdictions.
Both the Commonwealth and several states are projected to remain in deficit through 2025–26, driven by slower revenue growth and higher expenditure commitments.
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