Thirty years ago, then-Treasurer Paul Keating warned the country risked becoming a “banana republic” because of its reliance on resources and it took nearly 17 years to regain the two top credit scores. While Morrison’s language hasn’t been as strident, he has said Australia must live within its means and indicated a focus on reduced spending.
The government expects Australia’s budget position to improve in coming years despite the environment for commodity prices as it controls expenditure growth, Finance Minister Mathias Cormann said Thursday in an e-mailed response to questions.
Australia’s general government net debt is projected to peak at 19.9 percent in 2017, lower than any Group of Seven economy, according to the International Monetary Fund’s fiscal monitor. That number has climbed from minus 0.6 percent in 2009.
