Or in the common tongue, bullshido. Earlier I reported Moody’s:
- Australia’s budget for 2018-19 moves more quickly along the path of fiscal consolidation than was expected at the Mid-Year Economic and Fiscal Outlook, with a modest surplus forecast in 2019-20, one year earlier than expected. From a sovereign rating perspective, the constraints on fiscal consolidation in recent years have been one of Australia’s key credit challenges. If its underlying assumptions hold, the budget is a positive step in improving the fiscal outlook.
- This outlook is underpinned by solid economic growth and commodity price expectations broadly in line with our assumptions. However, a risk remains that the expectations for commodity prices are optimistic and uncertainty persists on whether wages growth will pick up significantly enough to support revenues.
- From a longer-term perspective, if the underlying assumptions underpinning the outlook hold, then the improved outlook for both net and gross debt is positive.
- From a broader perspective, Australia’s current sovereign rating (Aaa, stable outlook) continues to reflect its strong institutions, solid growth potential and resilience, and moderate government debt burden relative to its similarly rated peers.
And S&P:
