Since the Albanese government came to power in May 2022, the size of day-to-day government spending relative to GDP has gotten larger and larger, to the point where only the absolute height of the Covid panic saw government playing a greater role in the economy.
Concerns about this meteoric rise have often been dismissed and the implications of the government running what is essentially a crisis-level fiscal response to “normal” conditions have largely flown under the radar.
However, as fiscal pressures intensify for both the federal government and the states, the challenging reality of government expansion becomes apparent, leading to a tightening of control over the nation’s various budgets.
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