A surge in income and company tax collection, as well as lower-than-expected unemployment rates, are helping the federal budget recover from the COVID-19 recession.

New Finance Department data shows the budget deficit to the end of October was $7.9 billion better than forecast.

But the budget is still on track to show a deficit between $80 billion and $90 billion, meaning whoever wins the coming federal election will also inherit some tough budget repair decisions.

Today on Please Explain, senior economics correspondent Shane Wright joins Bianca Hall to discuss how the budget bottom line could influence the looming election.