The major political parties have begun outlining spending and cost-cutting measures ahead of the 2019 federal election, expected to be held in May.
But before Australians go to the polls, Treasurer Josh Frydenberg will hand down his first federal Budget, on 2 April at at 7:30pm AEDT.
One talking point has risen to fire ahead of the budget, according to University of NSW economics professor Richard Holden.
“This year it is possible the government will be expected to return the Budget to surplus, which is significant because Australia has run Budget deficits for many years now,” he told SBS News.
A surplus would mean the predicted revenue brought in by the government is larger than the amount of money it plans to pay out.
The annual federal Budget outlines how much revenue the Commonwealth expects to receive, and sets it out against how much, and where, the government will spend it.
It looks at spending in the coming year, and also for up to four years into the future - known as the forward estimates period.
The Coalition can ‘promise a lot more’
Typically delivered on the first Tuesday in May, it is unusual for a Budget to be in such close proximity to a federal election.
As the federal election must be held before the end of May, Prime Minister Scott Morrison - who, as treasurer delivered last year's federal Budget - moved the Budget so it is a month earlier than usual.
This represents a unique opportunity for the Coalition to canvass votes, professor Holden said.
“The government has been very keen to try and campaign on its economic management credentials,” he said.
“I think it sees this as a way, particularly if there is a return to surplus, for them to be able to campaign on those credentials."
Opinion polling has consistently shown that since the Liberal Party leadership spill last year, the Coalition is headed for an election defeat.
The 2018-19 federal Budget papers (AAP) Source: AAP
Phil Lewis, a professor of Economics at the University of Canberra, said the Coalition could use that to their advantage.
"I think most people are expecting this government will not be re-elected, so in a way, they can promise a lot more,” he told SBS News.
“A lot of people do not expect these Coalition Budget measures will are actually going to come into effect."
What happens if Labor wins the election?
A newly-formed Labor government would likely bring in a Budget of their own almost as soon as the election is over.
Labor has already announced a series of spending and cost-cutting measures it plans to implement if it forms government
Some economists are predicting a newly-formed Labor government will have so much planned in terms of extra expenditure, any Budget it announces might run a deficit.
Such an event could have effects on global financial markets, professor Lewis said.
Labor Treasury spokesman, Chris Bowen speaking to SBS Punjabi, 4 March 2019 Source: SBS Punjabi
"The government, if it has a deficit, has to borrow money from financial markets. The financial markets have what they call a credit rating,” he said.
“If the government is seen to be less responsible in its economic management by running deficits, then that credit rating goes down, and the government has to borrow with more interest.
“This means it becomes increasingly harder to actually pay the debt off, because a lot of the money is going towards paying the interest on the loan, rather than the loan itself."
