Budget deficit to halve this financial year but spending pressures mean boost will be short lived

Jim Chalmers' first budget to reveal $42bn improvement to bottom line across forward estimates but conditions will deteriorate after two years

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Soaring commodity prices and a strong labour market will deliver a $42bn boost to the budget bottom line over the next four years, with the deficit more than halving this financial year.

However, the improvement - to be revealed in Jim Chalmers' first budget on Tuesday night - will be short lived, with worse-than-expected deficits by the end of the forward estimates as a result of growing spending pressures.

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