Treasurer Jim Chalmers's latest federal budget includes more than $80 billion of 'spending' not on the books. Economists say that's where governments put their 'dirty laundry'.
Governments on both sides of the political fence have long done it, and the current federal budget features the same old accounting trick where billions of dollars of spending are shifted off-balance sheet by classifying it as investment.
Economist Michael Blythe says this number needs to receive far more attention in an environment where industry policy is becoming a central fiscal focus. "Many other nations around the world have become better with their budget. An ordinary member of the public could pick it up and understand a lot of what's going on.Business Council of Australia chief executive Bran Black also says it's important to have greater transparency in budgets than what governments include.
"And certainly in this budget the provisions we're making in aged care and early childhood education wages, those decisions haven't been handed down yet. But as those decisions become clear or the outcomes finalised, all of that information is updated and released in the next economic update.
"What we advocated for was more targeted relief … we didn't think an across-the-board approach was called for at this time."The federal budget is in its second year of surplus, but is poised to fall back into deficit for the next decade.
Chris Richardson says he is "a bit grumpy" with the budget being potentially inflationary by giving a "massive amount" of spending capacity to Australians, who will be likely to use it. He says fiscal policy can help by addressing the 3 Ps — population, participation and productivity — to help drive economic activity, jobs and incomes.Federal Budget 2024: Winners and Losers
He also welcomes the Future Gas Strategy, arguing for a vital role for gas in the clean energy transition.
Budget Jim Chalmers Off The Books Spending Budget Transparency Fiscal Responsibility Reserve Bank Interest Rates Rates Rate Cuts Inflation Economists Underlying Cash Deficit Future Made In Australia Nbn Snowy Hydro Chris Richardson Michael Blythe Tax Cuts
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