Lower debt, smaller deficits and savings to help deliver room for personal income tax cuts are set to be revealed by Scott Morrison in a Budget update today.
The Treasurer will show that total debt owed by the Federal Government will be $23 billion lower by 2020-21 on the back of a slightly stronger economy and extra tax from the corporate sector and Australians superannuation accounts.
In May, Mr Morrison forecast the Budget would show a deficit of $29.4 billion this year before falling to $21.4 billion in 2018-19. A surplus, the first in 14 years, was tipped for 2020-21.
That surplus may be brought forward to 2019-20 on the back of stronger tax collections and lower interest payments because of lower debt.
Gross debt, which attracts intere…