Coal prices have soared due in part to the war in Ukraine.Credit:Glen Hunt
In his budget speech last Tuesday,Treasurer Josh Frydenberg said net debt was significantly lower than last year’s forecast.
“By the end of the forward estimates,the budget is $100 billion better off compared to last year,” he said.
But the March 2022 Resources and Energy Quarterly,released by the Department of Industry Science,Energy and Resources,shows earnings are predicted to fall back to pre-pandemic levels as supply issues ease into the next financial year.
The boom in commodity prices helped improve the budget’s bottom line. Coal prices leapt at the start of the year and hit record highs while oil prices reached peaks not seen for 14 years,driven in part by the Russian invasion of Ukraine.
Base metal prices also surged,due to supply constraints and disruptions as economic activity rebounded in 2021.
The surges drove exports to grow $137 billion more than predicted in the March 2021 Resources and Energy Quarterly,which forecast exports to reach $288 billion in the 2021-22 financial year.
It’s part of the reason the federal government will bring in $49.2 billion more in tax than estimated in the previous budget.