The final outcome of the federal budget for the most recent fiscal year is expected to be better than expected when the numbers are reported this week.
Despite taking a hit during the coronavirus pandemic, the Labor government says the 2021/22 budget deficit could be healthier by $50 billion.
Treasurer Jim Chalmers said the numbers reflected stronger corporate tax receipts coupled with higher commodity prices, as well as higher receipts from a tight labor market.
But despite the projected deficit improvement for 2021/22, Dr. Chalmers said the fiscal black hole is still expected to be above $30 billion and that spending in its October budget needs to be curtailed.
“This is going to be a pretty standard bread-and-butter budget because for the times we’re in, that’s what it needs to be,” he said.
The 2021/22 budget result due on Wednesday will also provide further details on the state of government finances.
Earlier in the week, the Australian Institute of Petroleum will release its fuel report.
And on Tuesday, ANZ and Roy Morgan will release their weekly consumer confidence survey.
Consumer confidence has been subdued in recent weeks as the rising cost of living and rising interest rates worry people.
Also due on Wednesday will be the release of preliminary August retail sales and June quarter mechanical engineering figures by Statistics Australia.
The Reserve Bank of Australia will be watching retail sales data carefully for clues about spending habits to see if recent rate hikes are starting to cool consumer activity.
On Thursday, the ABS will release quarterly data on job vacancies, the new monthly CPI indicator and data on household and corporate balance sheets.
The RBA is due to release its credit and money supply data on Friday.
Meanwhile, the Australian Stock Exchange is likely to start the week in negative territory after Wall Street tumbled on Friday amid mounting fears that the US could slide into recession.
The US S&P 500 fell 62.49 points, or 1.69 percent, to 3,694.32 points, while the Nasdaq Composite fell 193.70 points, or 1.75 percent, to 10,873.10 and the Dow Jones Industrial Average down 473.55 points or 1.57 percent fell 29.603.13.
In response, the most-traded Australian stock index futures contract fell 82 points, or 1.25 percent, to 6478, suggesting a weaker start to local trading on Monday.
On Friday, the benchmark S&P/ASX200 index closed 1.9 percent lower at 6,574.70 points – its lowest close since July 1. The broader All Ordinaries fell 1.92 percent to 6788.7.