Better budget bottom line, higher inflation on the way

Treasurer Jim Chalmers and Finance Minister Katy Gallagher have unveiled the mid-year budget update. (Aap Image/AAP PHOTOS)

Treasury has updated its economic and fiscal forecasts for the next four years in its mid-year budget update.

BUDGET DEFICITS (PREVIOUS IN BRACKETS):

* 2025/26 - $36.8 billion ($42.2b)

* 2026/27 - $34.3b ($35.4b)

* 2027/28 - $36.2b ($27.1b)

* 2028/29 - $36b ($37b)

* Total - $143.3b ($151.7b)

GROSS DEBT:

* 2025/26 - $993b ($1022b)

* 2026/27 - $1069b ($1092b)

* 2027/28 - $1142b ($1161b)

* 2028/29 - $1213b ($1223b)

GDP GROWTH:

* 2025/26 - 2.25 per cent (2.25 per cent)

* 2026/27 - 2.25 per cent (2.5 per cent)

* 2027/28 - 2.5 per cent (2.75 per cent)

* 2028/29 - 2.75 per cent (2.75 per cent)

INFLATION:

* 2025/26 - 3.75 per cent (3 per cent)

* 2026/27 - 2.75 per cent (2.5 per cent)

* 2027/28 - 2.5 per cent (2.5 per cent)

* 2028/29 - 2.5 per cent (2.5 per cent)

WAGE GROWTH:

* 2025/26 - 3.25 per cent (3.25 per cent)

* 2026/27 - 3.25 per cent (3.25 per cent

* 2027/28 - 3.5 per cent (3.5 per cent)

* 2028/29 - 3.75 per cent (3.75 per cent)

UNEMPLOYMENT:

* 2025/26 - 4.5 per cent (4.25 per cent)

* 2026/27 - 4.5 per cent (4.25 per cent)

* 2027/28 - 4.25 per cent (4.25 per cent)

* 2028/29 - 4.25 per cent (4.25 per cent)