Australia’s government on Monday forecast the strongest budget outlook in 10 years, arming embattled Prime Minister Scott Morrison with a war chest which could fund possible tax cuts ahead of an early 2019 election which he is forecast to lose.

Treasurer Josh Frydenberg said Australia’s budget deficit for the fiscal year to June 2019 would be slashed to A$5.2 billion from the A$14.5 billion projected back in May.

“The combination of a growing economy with a record number of people in work is helping both sides of the ledger, increasing our revenues while also decreasing our expenditure,” Frydenberg told reporters in Canberra.

Morrison’s conservative government touted the improved numbers as evidence of its economic competence over the Labor opposition, which according to opinion polls is set for a landslide victory in the next election due by May 18, 2019.

Finance Minister Mathias Cormann hinted tax cuts will be a centrepiece of the government’s bid for re-election, and economists said Morrison now has sufficient resources.

“The budget numbers actually look quite conservative. We’ve been tracking the rolling revenue figures and they could have predicted even better figures,” David de Garis, a director of economics at National Australia Bank, told Reuters.

“It’s possible they have built in room for some pre-election tax cuts. With the housing market suffering, there’s a good case for fiscal stimulus next year.”