Budget surplus of $13b tipped, but Labor needs a ‘credible’ plan

The budget is on track for a $13.4 billion surplus this year but will swing into deficit next year and beyond, which could be worsened by Labor’s Made in Australia industry policy, one of the country’s leading forecasting firms says.

Treasurer Jim Chalmers has also been accused of having “no credible action plan” to fix the budget’s long-term structural deficit, which some economists say should be put at the heart of the budget strategy on May 14.