scott morrison josh frydenberg
(Image: AAP/Mick Tsikas)

As we live through the economic revolution caused by the pandemic, it can be hard to spot the historic shifts underway unless they directly affect us -- like working from home.

Another one was in the budget papers: not merely has Australia entered an era of colossal deficits, but of dramatically bigger government. After the government spends more than a third of GDP this year, it is also committed to spend around 27% of GDP a year to the end of the forward estimates -- more than two points higher than the level it has managed in recent years and one point higher than the highest level of Kevin Rudd's stimulus spending.

Few people have a problem with that given the pandemic but it means that, over the medium term, the government is about 10% bigger than it has been, giving it tens of billions of dollars of borrowed money to spend.