In his budget speech tonight Treasurer Josh Frydenberg announced that under a Coalition government we will see a decade of surpluses that will continue to build toward 1% of GDP within a decade.
He went on: we climb the mountain and reach our goal of eliminating Commonwealth net debt by 2030 or sooner.
But a funny thing happened on the way to paying off the debt.
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Iron ore dollars repurposed to keep the economy afloat in Budget 2019
As the budget papers point out, net debt as a proportion of Gross Domestic Product (GDP) is predicted in the budget to peak at 19.2%.
You might ask, then, how do we get from 19% to 0% debt/GDP in ten years if were generating a surplus of 1% per annum?
A small …
Read the full article at: http://theconversation.com/frydenbergs-budget-looks-toward-zero-net-debt-but-should-this-be-our-aim-114185