Budget’s worsening deficits are about falling revenue

Thursday 21 May 2015

ABC News has published a neat primer on the Budget, which argues that the deficit has been driven by so-called unexpected falls in receipts – most notably from lower commodity prices (mainly iron ore) – rather than spending decisions taken by past and present governments:

The budget papers once predicted a $5 billion surplus for the 2013-14 financial year. The final result was a $49 billion deficit, according to the budget Treasurer Joe Hockey handed down last week.

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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.