iPartners inFocus - Budget '22
Michael Blythe breaks down the 2022 budget in his latest inFocus. (By Michael Blythe, 30th March 2022)
The ability of the Australian economy to produce rivers of gold for the government remains unparalleled.
Once again, the Treasurer has delivered a fiscal document that reveals a dramatic improvement in government finances. Once again, the old fiscal equation that “more revenue = more spending” has been applied. And once again, we’ve been presented with a set of economic forecasts that look better than seemed possible only a few months ago.
What is different this time is that some of the benefit from improved economic parameters is flowing through to budget bottom lines. The trajectory for debt and deficits is improved relative to the May 2021 Budget and the December 2021 Mid-Year Review.
The fiscal authorities continue the process of tiptoeing away from the “surplus or bust” mentality that has prevailed for much of the past couple of decades. The goal is now full employment. Measuring fiscal success is now couched in terms of sustainability. And the benchmark for success is a declining debt:GDP ratio.
Read on for a closer look at Budget 2022 in this issue of iPartners inFocus
