Fitch: Australia's budget relies on 'optimistic' revenue views

The US-based rating agency, Fitch Ratings, is out with its review report on the Australian Budget released a day before, with the key highlights found below.

 Australia’s new budget relies on optimistic revenue assumptions, creating some “downside risk” for the government’s target to produce a surplus one year earlier than anticipated.

The projected 2019-/20 surplus was no sure thing.

Jeremy Zook, associate director at Fitch, said in a statement.

“The reliance on improved revenues, rather than policy proposals, to narrow the deficit poses some downside risk to the achievement of the government’s surplus target. “Politicians sell it as an indicator that the economic situation is under control.”