The substantial fiscal challenge from the budget is a forecast decade of deficits and highest plateau of federal government net debt for more than half a century.
about the supposedly “stunning improvement in our nation’s finances” under Labor overlooks the contribution from the massive and unexpected rebound in tax revenue as Australia’s national income has been pumped up by an energy and commodity price boom exacerbated by Russia’s invasion of Ukraine.more revenue than expected between the election of the Albanese government and the end of the forward estimates.
These foundations support a AAA sovereign debt rating that helps foreign investors retain confidence in a commodity-exporting economy which must rely on global capital to develop its resource base. Australia’s net debt as a share of GDP is low compared to most of its developed country peers. But it is not the future. For all its advantages, even the United States is heading for a reckoning over its fiscal profligacy. Much smaller, more commodity-driven Australia certainly can’t carry the debt levels that it does without high economic and political risks.
With a decade of deficits, and debt now plateaued at very high levels, the public needs to understand that governments are going to be constrained by the need for growth and financial responsibility. They need better answers from this government than overblown claims of restraint.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Budget 2024: Why Andrew Forrest is a big winner from Treasurer Jim Chalmers’ budgetJim Chalmers’ $23 billion bet on turning Australia into a green industry superpower ignores many of the issues on the top of the business sector’s wishlist.
Read more »
Budget 2024: Winners and losers from Jim Chalmers’ third federal budgetGreen business, public servants, renters and taxpayers are budget winners while consultants, the Reserve Bank and tax cheats do poorly.
Read more »
Federal budget 2024 live updates: Jim Chalmers to deliver Australia budget speechEnergy bill rebate and rent assistance boost confirmed ahead of speech. Follow live updates
Read more »
Budget 2024: Markets stick with RBA rate rise bet despite Jim Chalmers’ ‘optimistic’ budget forecastsBond markets are continuing to bet that the RBA will have to lift rates this year, despite new government forecasts predicting inflation will fall faster than the central bank expects.
Read more »
Budget 2024: Jim Chalmers’ budget could be make or break for LaborJim Chalmers is gearing up for his third and most important budget so far. If he spends too much and stokes inflation, he knows he’ll own the next rate increase.
Read more »
Budget 2024: Why Jim Chalmers is confident aboukt inflation and interest ratesThe treasurer insists his budget gets the balance right, even if the economists don’t agree. What will the Reserve Bank and the voters think?
Read more »