Fed: Balanced budget still most likely outcome, says economist

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Fed: Balanced budget still most likely outcome, says economist

CANBERRA, Feb 6 AAP - A balanced Budget was still the most likely outcome this yeardespite unexpected spending demands on the defence and immigration departments, a senioreconomist said today.

Better than expected tax collections and the freedom to shift the timing of spendingaround would deliver the government its desired headline Budget position, Macquarie Bankeconomist Richard Gibbs said.

"The fiscal flexibility built up by the government in the past several years providesa number of mechanisms through which the Budget balance can be managed in the …