Australia forecasts budget deficit of A$213.7 billion in 2020-21

Australia announces its budget for the latest fiscal year

• Sees GDP growth at -1.5% in 2020-21, +4.75% in 2021-22, +2.75% in 2022-23
• Sees CPI at 1.75% in 2020-21, 1.5% in 2021-2022, 2% in 2022-23
• To lower personal incomes taxes via A$17.8 billion stimulus
• Business can write off full value of any assets bought, use losses up until June 2022
• Universities get a research boost of A$1 billion

The government says that deficits are forecast for the next decade, with the A$213.7 billion roughly representing 11% share of the economy. Of note, they are expecting a solid rebound in the economy next year of +4.75% but we'll see how that plays out.

The expectation is for a roughly A$200 billion budget deficit so this is somewhere along those lines and the income tax cuts were very much expected.

AUD/USD is sitting little changed at 0.7156 on the headline, still down by 0.3% today.