Chris Joye, a portfolio manager with Coolabah Capital, recently wrote an article in the Australian Financial Review arguing that the expansion of government spending was placing upward pressure on inflation and, by extension, interest rates.
“At the federal level, the annualised monthly trend budget deficit has deteriorated rapidly from $12 billion in December 2024 to $24 billion in June 2025 and now $35 billion in November”, Joye wrote.
“This deficit represents the shortfall between public revenues and spending. And it does not account for spending at the state and local government levels”.
