Leading economists from KPMG and EY are warning Treasurer Jim Chalmers must not enter 'expansion mode' in the upcoming budget, arguing the government still had significant work to do to overturn structural deficits.
Leading economists are warning Treasurer Jim Chalmers must rein in spending ahead of Tuesday's federal budget, arguing the government needs to do more to reduce structural deficits as it risks being"insufficiently aligned" with the Reserve Bank .Leading economists from KPMG and EY are warning Treasurer Jim Chalmers must not enter"expansion mode" in the upcoming budget, arguing the government still had significant work to do to overturn structural deficits.
"The Federal budget, on Tuesday, carries significant weight as it will shape Labor's agenda going into the last 12 months before the next election," he said. Mr Rynne highlighted that spending was already"too high" pre-budget, sitting at 27 per cent of GDP instead of the typical pre-pandemic 24 per cent, with larger deficits now forecast due to expenditure outpacing revenue.
"Progress in narrowing the structural deficit has been encouraging but needs to go much further," she said. "Well it is a vastly different forecast from the treasurer to the RBA and this is up to the Treasurer to explain exactly why he is so optimistic about inflation," she said.
Chris Richardson Jim Chalmers Budget Surplus Brendan Rynne Future Made In Australia Michele Bullock RBA Jane Hume Cost Of Living ABS Inflation Australian Bureau Of Statistics Stage Three Tax Cuts EY Cherelle Murphy Household Spending Budget KPMG Government Spending
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