The Herald reports:
Australia’s forecast budget deficit is soaring as New Zealand continues to outperform its neighbour on the fiscal front – putting pressure on the Lucky Country’s coveted credit rating.
In its fiscal update, the Australian Government said its projected Budget deficit for the current fiscal year had increased by A$4.4 billion to A$41.5b as the economy continued to slow after a China-driven mining boom.
Ratings agency Standard and Poor’s said the fiscal update had no immediate effect on the credit rating but that the worsening position had put pressure on it.
“We remain pessimistic about the Government’s ability to close existing Budget deficits and return a balanced Budget by the year ending June 30, 2021,” the agency said.
We got back into surplus last year and Australia is unlikely to get back by even 2021.
New Zealand had outperformed Australia on the fiscal front, he said. “New Zealand’s policy makers have been more diligent. You are well and truly back in surplus. Australia is still struggling,” Bloxham said.
Bill English’s fiscal discipline paid off.