Aussie federal budget "on track" to return to balance by 2021: official

Australia remains "on track" to return its budget to balance by 2020-21 despite forecasts estimating a further blow out of more than 7.5 billion U.S. dollars over the next four years, Treasurer Scott Morrison said on Monday.

Revealing the government's 2016 Mid-year Economic and Fiscal Outlook (MYEFO) in Canberra, Morrison said he was still confident that Australia can return to budget balance despite estimates showing annual increases in the deficit over the next four years.

"MYEFO confirms that the government's plan to restore the budget to balance by 2020-21 remains on track," Morrison told the press on Monday.

He said the government has plans to raise further money by increasing the nation's departure tax by 4.25 dollars to 47.5 dollars, raising Commonwealth penalty units (fines) from 130 dollars to 155 dollars, and raising 1.54 billion dollars through the government's "welfare crackdown."

Morrison said, overall, the government has been able to demonstrate it can effectively save more money than it spends while still fulfilling its key election promises.

"In each and every year of the budget and the forward estimates, net policy decisions of the government have improved the bottom lines, including net payment saving, in each and every year," Morrison said.

"Once again we have demonstrated that we do not spend more than we save, and that the predominant mechanism for restoring the budget to balance is by getting expenditure under control."

Morrison said the "positive" MYEFO would help Australia maintain its at-risk AAA debt rating, something Fitch Ratings has reportedly confirmed, according to local media.

"Australia considers to be well-supported and rated by inter debt markets, reinforcing our global reputation and standing as a secure place to invest," Morrison said.

"This statement provides a responsible, conservative and transparent update of Australia's government's fiscal position." Endit