Economy

Feb 3, 2016

Don’t look now, but the govt just blew out the national debt

Two documents and a speech arriving within days of each other have belted Malcolm Turnbull and Scott Morrison about the ears over government debt. Freelance journalist Alan Austin reports.

The Australian Office of Financial Management (OAFM) has dashed all hopes that a recent slight decline in gross debt was the start of a downward trend. Gross debt at the end of January, according to Monday’s update, smashed upwards through the $400 billion barrier again to $408.2 billion.

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3 thoughts on “Don’t look now, but the govt just blew out the national debt

  1. CML

    Well said Alan…thank you for the update.
    Just proves, yet again, that contrary to MSM reports, the current government are NOT doG’s gift to economic management of this country!
    In fact, they are far worse than the previous Labor government!!

  2. klewso

    Another reason to raise the GST – so the poor can pay more?

  3. Hunt Ian

    Your point about the need to raise taxation on those who can most afford it is spot on Alan but Fraser will not accept that. Like the government and Paul Keating, he believes the clap trap about the need to keep taxes low and to pay down debt through the “growth” that less tax on the rich and more tax on the poor is supposed to bring. This nonsense still has MSM support but it is frustrating that Paul Keating can be found urging the same policy under the heading that we have to trim our spending because the fall in commodity prices has reduced what the world pays us.

    That point is obviously true: we have to trim our spending but it is not obviously true that the trimming has to occur on health and education and welfare for the poor. That is the current government line. Alan makes the point that the trimming should occur on the rich, where increases in taxes will give them less to spend or save. The deflationary impact of their loss of income will be least, since their savings can fall and reductions in their spending is more likely to reduce imports.

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