The Future Fund should shut and its $250 billion in assets should be sold to pay down government debt, according to a paper warning the fund will struggle to deliver the returns required to justify its existence.
The subsidiary funds include $47 billion earmarked for the National Disability Insurance Scheme, medical research and drought preparedness. “If the fund were wound up the Commonwealth would have no substantial financial assets which would leave its balance sheet exposed totally to debt.“This is an intergenerational fund for the long-term. Fortunately, people in government were thinking long term two decades ago.”
“The economic risks posed to Australians because of the Commonwealth effectively operating a leveraged investment fund with taxpayer funds are significant.”by the newly-elected Minns government in NSW to put an indefinite pause on contributions to the state’s debt retirement fund, which was established before COVID-19 when the state had negative net debt and the budget was in surplus.
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