Deficit and Debt

The Pre-election fiscal update confirms massive deficits and debt.

The forecast of a potential surplus in four years is wishful rather than realistic. Even if forecasts of the economy in four year times were accurate, the assumptions are a level of fiscal discipline that the current Government has shown it is incapable of achieving.

The more useful numbers are what will happen this year, and probably next year.

Treasury are saying that in the year just ended we will have a massive $10 billion deficit and in the current year an even larger $11.4 billion deficit. Debt in just two years will go from $71 billion to $100 billion.