Key points

• The 2017-18 Budget has a welcome focus on housing affordability and infrastructure.
• Subdued wages growth is keeping revenue collection down contributing to a slight deterioration in near term deficit projections (a deficit of $29.4bn for 2017-18) but a return to surplus is still projected for 2020-21.
• This year’s Budget should be positive for confidence.
• The impact on the RBA and the shares is likely minimal.