With government expenditure set to jump, we need to think about how to pay for it
Last week both the secretary of the Treasury, Martin Parkinson, and the governor of the Reserve Bank, Glenn Stevens, had their say about the budget. They both noted government expenditure is expected to increase and that we need to start thinking about how to pay for it. When the two guys whose signatures appear on your money start talking about the nations finances, it is probably worth listening.
Since the pre-election economic and fiscal outlook (Pefo) was issued, the expected level of government spending in the future has grown, while the expected level of revenue has fallen. The Pefo projected a balanced budget in 2015-16; now budget deficits are forecast for another 10 years:
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