After a brief lull, the Turnbull government has resumed its borrowing binge. The government’s borrowing authority, the Australian Office of Financial Management, borrowed a further $1.6 billion this week, which means that government debt today reached a new record of $466.4 billion. See aofm.gov.au
When the Coalition won the 2013 election of a platform of paying off debt, the level of debt was just $273.1 billion. This means that in just over 3 years, it has added a thumping $193.3 billion to government debt or close to $5 billion a month.
Based on the Turnbull government’s current policy platform, debt will keep rising. According to last month’s Mid Year Economic and Fiscal Outlook, the update that saw the budget deficit estimates for the next few years revised higher, government debt is forecast to reach $601 billion in June 2020 and $648 billion in June 2027.
Little wonder the credit rating agencies are a little antsy.