Australian Government To Borrow $60 Billion

Post by Sharat on May 13, 2009 · Under Australian Economy · 2 Comments 

The Federal Government of Australia, through the Australian Treasury says it plans to issue $60 billion in new debt or Treasury bonds during the financial year ending 30th June 2010.

The banking crisis which has caused recession for some countries and slowdowns in others, has meant that there has been a sharp drop in export led commodity earnings which has meant spending deficits as tax revenues fall.

The 2008/2009 fiscal year produced a $32.9 billion deficit, which is projected to increase to $53.1 billion in 2009/2010.

The Federal government only 12 months ago believed there would be a $21.7 billion surplus in the 2008/2009 fiscal year and was trumpeting a projected $19.7 billion surplus for the next fiscal year as a result of the China driven, export led, commodities boom.

Despite projecting deficits and having to issue debt to plug the revenue spending gap, the Government for its part, says its balance sheet is fundamentally sound

“The global recession has affected governments’ budgets everywhere. The Australian government’s net debt position is small compared with current debt levels in most advanced countries.” budget papers said

To put the Australian Government’s borrowing in context, The UK which has nearly double the population of Australia says it plans to borrow close to $40 billion next year, whilst the US dwarfs both Australia and the UK with the size of its borrowing requirement, and will issue anywhere between A$2 -3.25 trillion in debt next fiscal.

Compare Australian Health Insurance Deals

Bookmark and Share

Related posts

Tags:

Comments

2 Responses to “Australian Government To Borrow $60 Billion”

  1. mick on January 1st, 2011 12:55 am

    Obviously Australia isn’t a sovereign nation in control of its own currency if it has to go borrow its own currency from a foreign bank.

    Borrowing money from other countries is perpetual slavery with interest.

  2. Sharat on January 2nd, 2011 4:42 pm

    You mean like the American’s, The British, The French, The Japanese and on and on and on.

Leave a Reply







Sponsored Ads