Budget running better than expected

The federal budget is in a better shape at the end of August than forecast in May.

The federal budget is in a better shape at the end of August than forecast in May. (AAP)

The federal budget deficit came in $1.33 billion under its end-of-August forecast thanks to stronger revenues and lower spending.

The underlying cash balance after two months of the financial year was a deficit of $11.34 billion.

Total revenue was $724 million higher than the budget profile while total payments were $720 million lower.