Australian budget

Exclusive: S&P hoses Morrison’s Budget accounting fiddle

David Llewellyn-Smith
Thursday 27 April 2017
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This morning I asked S&P’s Australian analyst, Craig Michaels, the following:

Does today’s mooted changes in Budget accounting, which divides supposed good and bad debt, alter the way S&P views the Budget? Specifically:

  • will it alter the calculation of general government debt to GDP?
  • will it alter S&P’s view of the 30% general government debt to GDP red line for support of the AAA rating?
  • will it change S&P’s view of the Budget in any other way?

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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.