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Luke Yeaman, Chief Economist at CBA, penned a report on the Australian federal budget, which “is projected to return to deficit over the next decade”.
While “tax receipts are strong”, Yeaman notes that “structural spending has lifted to levels rarely seen in Australia outside of major economic shocks”.
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While spending pressures are evident across most major areas of the Budget, Yeahman notes that the “NDIS is the elephant in the room” and “has been the largest driver of the uplift in structural spending, single handedly adding around 1.7%/GDP”.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.