In the years since the final benefits of the mining boom were felt throughout the economy, the relative size of the government’s role as a driver of economic growth has grown to unprecedented post-war heights.
It is here that an important distinction needs to be made. The overall size of government spending as a proportion of GDP can vary significantly over time due to fluctuations in government investment levels.
For example, if a program of mass infrastructure construction on a grand scale is being pursued, as it was in several instances in past decades, it can significantly increase the relative size of government within the economy.
