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ABA statement on Mid-Year Economic and Fiscal Outlook  

ABA statement on Mid-Year Economic and Fiscal Outlook  

17 December 2025

The ABA acknowledges the release of the 2025-26 Mid-Year Economic and Fiscal Outlook.  

The Government’s forecasted $8.4 billion reduction in the deficit over the forward estimates including a $5.4 billion reduction for year’s deficit is welcome.  

Lower deficits and claimed savings of $20 billion over the next four years is a beginning towards ensuring our national finances are on a more sustainable footing.  

While this Budget update contains lower forecasts of spending as a share of GDP, the ABA notes the importance of ongoing spending restraint to help reduce inflationary and interest rate pressures.  

Banks will continue to work the with Federal Government on long-term reforms to boost productivity, build resilience, lift innovation and support stronger economic growth.

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