Monday 23 December 2019

Will the Government achieve a surplus?

When we  examined the budget after MYEFO was released  the surplus was razor thin. Indeed I would call it balanced not a surplus. ( It becomes a surplus once it is over 0.5% of GDP).

Two people have in recent times questioned whether the surplus will be achieved.

The Kouk questions the strategy.

John Quiggin thinks it is likely the response to the bushfires will burn the surplus.

As I said before increasing the structural budget surplus in these circumstances is stupid.  Ironically it may lead to the budget remaining in deficit.

The Government needs everything to go right. Me thinks it will resort to accounting tricks if needed to achieve that budget surplus.

No comments:

Post a Comment