Advertisement
From The Australian:
…Treasury’s borrowing agency informed financial markets that it would be raising a record $90.5bn this year to cover the government’s deficit and roll over maturing debt, which analysts believe could put Australia’s AAA credit rating in jeopardy.
Turning on critics who call for bigger spending cuts or tax increases, the Treasurer told The Australian that trying to cover the impact of falling tax revenue would only wipe out the economic growth needed to produce a budget surplus and pay down the debt. “Something like that would have absolutely tanked household consumption; it would have had quite a devastating impact on the domestic economy,” he said.
The full text of this article is available to MacroBusiness subscribers
Cancel at any time through our billing provider, Stripe
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
Advertisement