Why is the Australian Government (Australian Government general government sector) reporting an underlying cash deficit for 2025–26 to May 2026?

The Australian Government (Australian Government general government sector) is reporting an underlying cash deficit of A$10.9 billion to 31 May 2026 because cash payments of A$704.7 billion have exceeded cash receipts of A$693.8 billion so far this year, even though both are tracking slightly better than the revised budget profile.

What are the key revenue and expense figures for the Australian Government (Australian Government general government sector) in the May 2026 statements?

The Australian Government (Australian Government general government sector) reported total year‑to‑date revenue of A$715.2 billion and expenses of A$724.9 billion to 31 May 2026, producing a net operating balance deficit of A$9.8 billion; tax revenue made up A$663.0 billion of the total.

How is the Australian Government (Australian Government general government sector) tracking against its full-year 2025–26 budget forecasts?

The Australian Government (Australian Government general government sector) is running ahead of its revised budget path, with the A$10.9 billion underlying cash deficit to May narrower than the A$18.5 billion profile, while the published 2025–26 forecasts still point to a full‑year underlying cash deficit of A$28.3 billion and a fiscal deficit of A$50.1 billion.

What does the reported net debt of the Australian Government (Australian Government general government sector) mean?

Net debt for the Australian Government (Australian Government general government sector) was A$537.4 billion at 31 May 2026, meaning interest‑bearing liabilities of A$956.7 billion are partly offset by selected financial assets such as A$83.0 billion in cash and deposits, A$71.0 billion in advances paid and A$265.2 billion in investments, loans and placements.

How is the overall financial position of the Australian Government (Australian Government general government sector) described in the May 2026 balance sheet?

The Australian Government (Australian Government general government sector) reported total assets of A$958.2 billion and total liabilities of A$1,544.8 billion at 31 May 2026, giving negative net worth of A$586.7 billion and net financial liabilities of A$871.0 billion, while net financial worth (financial assets minus total liabilities) was negative A$820.0 billion.

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Australian budget runs smaller-than-expected May deficit of A$10.9b

Written by Liezl GambePublished Jun 26, 2026, 3:59 AM

The Australian Government reported an underlying cash deficit of A$10.9 billion for 2025–26 to 31 May 2026.
Receipts were A$1.7 billion above profile while payments were A$5.9 billion below profile, improving the in‑year position.
The Government’s published budget still forecasts a full‑year underlying cash deficit of A$28.3 billion and a fiscal deficit of A$50.1 billion.

The Australian Government’s general government sector recorded an underlying cash deficit of A$10.9 billion for 2025–26 to 31 May 2026, smaller than the A$18.5 billion deficit pencilled in for that point in the year.

The May monthly financial statements show receipts running A$1.7 billion above the revised budget profile and payments A$5.9 billion below profile, narrowing the in‑year shortfall compared with the 2026–27 Budget expectations.

“The backlog of people waiting to start a job has eased in May,” said Australian Bureau of Statistics Head of Labour Statistics Sean Crick, in separate labour data cited alongside the fiscal update.

The statements report revenue of A$715.2 billion and expenses of A$724.9 billion year to date, a net operating deficit of A$9.8 billion, and a fiscal balance deficit of A$17.0 billion, compared with year‑to‑date profile deficits of A$19.0 billion and A$27.2 billion respectively and full‑year forecasts of A$39.0 billion and A$50.1 billion.

Looking ahead, the Government’s revised 2025–26 Budget still points to a full‑year underlying cash deficit of A$28.3 billion and a headline cash deficit of A$47.9 billion; following the publication there was no direct listed‑company share price move linked to these sovereign figures.

As at 31 May 2026, total assets stood at A$958.2 billion and total liabilities at A$1,544.8 billion, implying negative net worth of A$586.7 billion, net financial liabilities of A$871.0 billion and net debt of A$537.4 billion, all modestly better than the full‑year estimates.

The Government noted that monthly results can be volatile because tax receipts and program payments do not fall evenly through the year, and said the data are prepared under AASB 1049 using Government Finance Statistics concepts to support transparency and IMF reporting standards