Federal and state taxes will hit a record share of the Australian economy this year, the International Monetary Fund says, but the surge in revenue will not be enough to prevent six years of deficits as spending pressures mount.
The Washington-based IMF forecasts federal, state and local government revenue will reach a record 36.4 per cent of gross domestic product in 2024, according to projections in the latest Fiscal Monitor, released on Thursday.
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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com
John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
