Print PageThe Chamber of Commerce and Industry says the pre-election financial statements reveal serious structural problems in the budget that need to be addressed.
The papers show an improved forecast surplus for this financial year of $241 million, while a forecast deficit of $187 million next year has been revised to a $390 million surplus.
The CCI's chief economist, John Nicolaou, says while the budget position has improved, it has been largely driven by the increase in royalties revenue.
He says the Government needs to audit its programs and rein in spending.
"There are some genuine structural problems inherent in the budget and that's because the government is relying on an increasingly volatile source of revenue, primarily in the form of royalties, and on the other side has an expenditure budget that continues to grow," he said.
"The pre-election statement only just confirms the need for a wholesale review of spending programs to ensure the budget position is in the black and is sustained."
