The Federal Government of Australia has just announced a $14.4 billion budget surplus. This is despite taxcuts amounting to maybe 10billion or so over several stages. The state governments are also generally recording substantial budget surpluses as well, proably amounting to an aggregate of about 3billion.
Some would say that Australia must have a very strong economy and in many ways that is true, but we do run a current account deficit of about 6% of gdp, maybe higher. It seems that very large government surpluses are of no assistance to reducing current account deficits, although very large government deficits are often blamed for large current account deficits.
Some would say that Australia must have a very strong economy and in many ways that is true, but we do run a current account deficit of about 6% of gdp, maybe higher. It seems that very large government surpluses are of no assistance to reducing current account deficits, although very large government deficits are often blamed for large current account deficits.
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