Very shortly we get to see the details of the most hotly anticipated federal budget in years.
The combination of infrastructure spending, increased taxes, pre-election promises, privatisations and other measures is maelstrom of data and cashflows from which the Budget deficit will drop out.
But as the ABC suggests the Government is going cut another $60 billion from the 4 year budget projection we saw in MYEFO last November of approximately $120 billion it’s worth thinking about the total size of Australia’s economy and deficit compared to countries like the United States.
Overnight the US Treasury reported that the US ran a budget deficit in the 7 months to April of $US306.41 billion, down 37% from the same period a year earlier.
Incredibly Treasury had a surplus of revenue over receipts in April of almost $US107 billion.
That’s one month. Not four years.
It really shows the scale difference between the Australian and really big economy’s like that of the United States.
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