Bigger and hidden deficits are the real MYEFO result
Labor is effectively doubling down on the bigger spending on bigger government that has crowded out private investment. It adds up to deeper deficits and continued sluggish economic growth.
Treasurer Jim Chalmers’ temporary budget surpluses have vanished into a deeper sea of red ink. Wednesday’s mid-year economic and fiscal outlook (MYEFO) reported a $1.3 billion improvement in this year’s deficit. Yet the cumulative deficit for the next four years is $143.9 billion, up $22 billion compared to the $122.1 billion forecast in the May budget.
The fiscal deterioration is bad. Worse is the true state of the public finances.
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correction —
This editorial originally stated the economy is forecast to hit 26.2 per cent of GDP next year. It has been updated to state the correct figure of 27.2 per cent.
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