At the AFR it is all beer and skittles for Josh Frydenberg:
Department of Finance monthly budget figures show the underlying cash deficit for the 11 months to May 31 in the current financial year had narrowed to $115 million down from $4.9 billion in April and $2.25 billion lower than the 2018-19 revised budget profile deficit of $2.37 billion.
On a rolling 12-month basis, the budget was already in an underlying cash surplus of $1.5 billion but that shot up to $13.7 billion.
…The much-improved figures were driven by lower government spending with total payments $1.7 billion lower than the 2018-19 revised budget profile, and surging revenue with total receipts $1.4 billion higher than the 2018-19 revised budget profile.
Good job, mate, and goodbye economy, via Credit Suisse’s leading index of activity for infrastructure:
Aaaand domestic demand:
All entirely predictable. The accounting identities of GDP guarantee it. In a current account deficit economy, if the government is running a surplus then the private sector must be running a deficit or growth will shrink.
Josh Recessionberg appears blissfully unaware of basic GDP accounting because, you know, good economic management…
