“Sell ’em dirt” toasts the Budget

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By Leith van Onselen

A fortnight ago, forecasting firm, Macroeconomics, forecast that the Federal Budget revenues would be slashed by $52 billion over four years courtesy of slumping commodity prices, falling mining investment, and weak income growth.

Today, The Australian reports that falling commodity prices (iron ore in particular) will punch a $10 billion hole in the Budget this year, pushing the deficit towards $40 billion from the previously forecast $30 billion:

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.