Business
Economists predict budget deficit up to $270 billion, even bigger debts to come – Sydney Morning Herald
The government has confirmed the biggest budget deficit in history, but it will be a speed bump compared to the 2020-21 shortfall, say key economists.
Government spending soared by $57 billion over what was expected, largely driven by the JobKeeper program and increased welfare payments to the unemployed, pensioners and students. At 27.7 per cent of GDP, spending is at its highest level outside of war time.
Mr Frydenberg said with official interest rates already near zero, it would be up to the government through the budget to bring the economy back to health.
“Fiscal policy is the main game in town. We don’t have the luxury that governments…
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