Australia forecasts narrower budget gap

Sydney

AUSTRALIA'S government forecast a narrower budget deficit this fiscal year as swelling corporate profits boosted the tax take, even as weak wage growth weighed on collections.

The underlying cash deficit in the 12 months through June 2018 will be A$23.6 billion (S$24.3 billion), compared with a May forecast of A$29.4 billion, Treasurer Scott Morrison said in a half-yearly update. While growth and wage estimates were shaved, the books are still forecast to return to the black in 2021.