It's now $61.15 billion of gross borrowing by the Abbott government

Fri, 21 Mar 2014  |  

The week ends with the Abbott government borrowing a further $700 million today, which brings the total of gross borrowing since 9 September 2013 to $61.15 billion.

$61.15 billion of bond and T-Notes that have been issued in just over six months as the government funds the budget deficit, covers maturing bonds and T-Notes and prepares to fund a range of its policy expenditure items.

As I have noted at nausium on the issue of government debt over recent years, the Australian government's debt level remains trivial, chicken feed, small beer and the campaign of the Coalition Parties to suggest otherwise was factually flawed and it still is.

Even in government, the Coalition bemoan the level of debt and pretend it is a major factor threatening to undermine Australian sovereign risk or some similar nonsense.

The credit ratings agencies, all which rank Australia triple-A with a stable outlook and have since 2011, suggest the level of government is low. So do foreign investors who own close to three-quarters of the government bond market and a huge proportion of the stocks listed on the ASX as well as an increasingly large holding of property. They do so comfortable in the knowledge that a government debt problem that would hurt the Australian dollar or bond yields is very unlikely.

The cumulative effect of the new borrowing means that gross government debt now stands at $310.1 billion, some $36 billion higher than when Mr Abbott convincingly won the 2013 election.

It was always obvious the promise to stop the borrowing and repay Labor's debt were false. The facts confirm this.

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Abbott gives up on debt and deficit

Mon, 02 Mar 2015


This is an article that appeared in The Adelaide Review at this link. 

It was published on 26 February 2015.


It appears the Abbott Government has given up on cutting the budget deficit and slashing government debt.

In retaining the leadership of the Liberal Party, Tony Abbott has dropped a range of his existing policies that were aimed at reducing government spending and lifting government revenue, and he has added a few extra spending items into the mix.

Even before these policy reversals, the evidence was mounting that the budget deficits were getting bigger and the growth in the level of government debt was accelerating, in part driven by the Abbott Government's own approach to fiscal policy.

Almost halfway through their first term in office, the Abbott Government has failed in its commitment to reduce the budget deficit and cut government debt. In fact not only has he failed, but the reverse has happened. The budget deficit is getting bigger and the level of government debt is rising.

Wages growth plumbs record lows

Wed, 25 Feb 2015

One of a huge problems confronting the economy now is the weakness in household incomes. Without decent growth in income, consumer spending will be constrained unless households decide to either run down savings or add to debt, neither of which is sustainable in the long run.

The wage data today confirmed the wage price index up rising by 0.6 per cent in the December quarter or 2.5 per cent over the year. This is the weakest rate of increase in any roughly comparable wage measure I can find in data bases going back to the 1960s.