Federal Budget's $19 billion improvement gives smallest deficit in a decade

The Federal Budget is more than $19 billion better off than forecast, boosted by economic growth and falling unemployment.

The final outcome for the 2017-18 budget showed a deficit of $10.1 billion - a $19.3 billion improvement on the predicted bottom line.

It's the smallest deficit in ten years.

Treasurer Josh Frydenberg said the result showed the budget's "on path" to return to balance, as expected, in 2019-20.

"The economy is on track. It's growing strongly and it has good momentum," he said.

The $10 billion deficit is 0.6 percent of gross domestic product - clear evidence, the Treasurer said, the government's economic plan is working.

The outcome was boosted by company profits and a growing workforce, with revenues $13.4 billion higher than expected at the time of the budget.

Payments were down $6.9 billion, on the back of reduced unemployment and welfare.

Mr Frydenberg said the government had legislated $50 billion in savings since coming to power in 2013, with spending real growth down 1.9 percent - the lowest in 50 years.

Employment also grew 2.7 percent to the June quarter, almost double the budget forecast.

The budget will be updated in the mid-year outlook in December. 

Shadow Treasurer Chris Bowen saw little good news in the budget figures.

The deficit, Mr Bowen said, was almost four times than forecast in the Liberals first budget, and net debt had doubled from $175 billion in 2013 to $342 billion.