The Federal Government has delivered a budget surplus of 7.5 billion dollars for the last financial year.
30 Sep 2003 - 12:00 AM  UPDATED 23 Aug 2013 - 9:01 AM

That's 3.6 billion dollars higher than the government forecast in the May Budget.

The higher than forecast surplus has increased speculation of tax cuts ahead of the Federal Election due next year.

The Treasurer, Peter Costello, says the higher than expected surplus is due to increased revenue from company taxes and reduced expenses.

Mr Costello says much of the surplus has been used to reduce government debt.

"We have now reduced the Australian Government's net debt by 66 billion dollars since the Coalition Government was elected, so this is a strong result by international standards it puts Australia in a strong fiscal position we would one of the strongest positions of the world certainly much stronger than any of the G7 countries and nearly all of the OECD."

The Opposition's finance spokesman, Bob McMullan, says the surplus is evidence government is taking more away from Australians in taxes and delivering less in vital services than promised.

"Income tax collections for the government are increasing at twice the rate that the economy's growing. The government took ten per cent more income tax this year than last year and where's the spending falling? The areas that are vital to family budgets: family services, health and education."