This morning, I spoke to Fran Kelly on RN Breakfast about the problems confronting the government on the budget.

Click here to listen to the interview. 

Key points are that we need the economy to grow more quickly, the government needs to curtail its spending and the RBA will likely need to do the heavy lifting (with an interest rate cut) if GDP growth is to get back above 3 per cent and hold the unemployment rate below 6.5 per cent.