Trillion-dollar debt delayed but interest bill accelerates to $2.5m an hour

The federal government has delayed the point at which its total debt exceeds $1 trillion as it comes within sight of balancing the budget this year on the strength of unexpectedly high commodity prices and record numbers of people in work.

Interest on government debt is the single fastest-growing budget expense, as record-sized deficits due to spending through the pandemic lockdowns were exacerbated by a surge in global interest rates. A combination of high commodity prices, the strong jobs market, a lift in wages and high inflation all mean budget deficits are expected to be smaller.

Deloitte Access Economics estimates tax revenues alone are $37.6 billion stronger this financial year compared to what was forecast in the October budget. It estimates total revenues are $41.3 billion stronger. Data from the Australian Bureau of Statistics on Thursday highlighted the revenue benefits flowing to the budget, which is keeping a lid on total government debt.It was driven by an 11.6 per cent or $1.6 billion jump in iron ore exports. Exports of rural goods increased by almost 11 per cent or $700 million through the month.

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Government ‘can’t do everything on day one’ to assist cost of living pressuresPrime Minister Anthony Albanese says his government will introduce a number of measures to assist cost of living pressures but it can’t “do everything on day one”. “I haven’t been in office for a year yet and it follows almost a decade of, I think, a government that was characterised by inaction, delay and denial that we were left with $1 trillion of debt,” he told Sky News Australia host Piers Morgan.
Source: SkyNewsAust - 🏆 7. / 78 Read more »