This statement summarises the main budget aggregates for the Australian Government general government sector.

The fiscal outlook for 2007-08 remains strong, with the Government forecasting an underlying cash surplus of $10.6 billion. Across the forward estimates the Government has maintained the budget in a surplus position after providing for personal income tax relief worth $5.3 billion in 2007-08 and $31.5 billion over the forward estimates.

The Government's sound fiscal management has eliminated net debt which stood at $96.3 billion in 1996-97. It is expected that net worth will be positive in 2008-09. The ageing of the population, together with rising age pension, health and aged care spending, will open a gap between revenue and expenses in the long run. By accumulating financial assets in the Future Fund and maintaining strong surpluses over the forward estimates, the Government is well placed to deal with these emerging fiscal pressures.