When will the Commonwealth of Australia be in surplus again?

The Commonwealth is set to return to surplus again in the next financial year after a record year of spending.

The government will have $3.3 billion to spend over the next four years, with the surplus expected to reach $9.5 billion by 2020-21.

Photo: Alex Ellinghausen The Reserve Bank will also provide the Government with $4 billion over the year, with more than half of that allocated to finance the budget.

The surplus will be a boost to the Government’s fiscal position, and has been promised for the budget after years of deficits.

But the Government is already set to spend more than it earns.

Treasurer Joe Hockey has already revealed a $5.8 billion increase in the Commonwealth’s budget in the 2016-17 financial year.

Photo : Alex Elinghausen It will mean the Government will have more money to spend, and it is forecast to spend $4.9 billion in 2020-22, which is a record figure for the Commonwealth.

But that will come with a price tag of $1.3 trillion.

“The surplus will go up as a result of more spending by the Commonwealth, which we are very pleased about,” Treasurer Joe Hobart said on Wednesday.

“But that does mean we will have to have to make some cuts in other areas of spending, and we’ll have to get it down a little bit.”

Photo: Andrew Meares Inflation is expected to hit 4.1 per cent over the three months to December 2020, which will be the first time it has breached that level since 2009.

“It’s going to be a real challenge to keep it in that level, but we’re very happy with the way things are moving,” Mr Hobart told reporters.

“We are going to see inflation coming down, we’re going to have lower prices, and the impact of inflation is going to go down and down.”

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