The federal government has posted a smaller than expected budget deficit, putting them on track to deliver a surplus this financial year.

Despite predicting a $4.2 billion deficit for 2019-20, Treasurer Josh Frydenberg says the budget is back in balance after announcing a deficit of just $690 million.

Chief Economist at Deloitte Access Economics Chris Richardson tells John Stanley it’s been a long time coming.

“It was just three years ago that the deficits were $40 billion a year and it didn’t seem we were getting anywhere, Canberra couldn’t compromise its way to anything.

“In the end, it actually wasn’t some tough decisions out of Canberra that got us there.”

Click PLAY below to hear the full interview

Image: Getty/Tracey Nearmy