Labor will hand down a $15.8 billion surplus in a significantly better result the federal government attributes to lower spending in a weaker economy.

Treasurer Jim Chalmers will release the final budget outcome on Monday, showing a surplus for the 2023/24 financial year, the second in a row.

The surplus, 0.6 per cent of the nation’s total economic output, is $6.4 billion higher than the original $9.3 billion forecast in the May budget.

In the previous year, the budget was back in black by $22.1 billion.

The government returned 87 per cent of revenue upgrades to the budget last financial year since the pre-election economic and fiscal outlook.

Payments as a share of gross domestic product in 2023-24 was 25.2 per cent, lower than the 27.1 per cent previously forecast.

Chalmers said the Albanese government was the first to deliver back-to-back surpluses in almost two decades.

“A second straight surplus is proof of our responsible economic management,” he said.

“These surpluses help pay down Liberal debt, help fight inflation and haven’t come at the expense of cost-of-living relief for people under pressure.”

Analysis to be released in the final budget outcome is expected to reveal less revenue generated from taxes and payments.

The Australian economy hasn’t experienced such weak economic growth since the recession of the 1990s, excluding the Covid-19 pandemic.

As households across the country continue to feel hip pocket pain, Labor hopes the Reserve Bank will deliver a rate cut ahead of the federal election, which must be held by May.

Finance Minister Katy Gallagher said the government had exercised fiscal discipline and reduced “wasteful spending”.

“Posting back-to-back surpluses is a key part of our plan to take pressure off inflation while providing relief to families, who we know are under pressure,” she said.

-AAP