Today’s MYEFO release is expected to reveal that the deficit has blown out to $40 Billion , highlighting Federal Treasurer Scott Morrison’s mishandling of Australia’s economy. The Turnbull Government with Morrison as Treasurer have failed to deliver on their promise of ‘sensible’ economic management. The budget, especially since Morrison has become Treasure has seen a growing deficit and a shrinking economy.
Due to the expected deficit in MYEFO and the mismanagement of the economy rating agencies are expected to down grade Australia’s credit rating down from its AAA rating.
The Turnbull Government was warned it could have locked in Australia’s AAA credit rating by abandoning its $50 billion company tax cuts and adopting sensible reforms to negative gearing and capital gains, which would improve the budget by over $80 billion over the medium-term, and would double the projected surplus in 2020-21.
Chris Richardson of Deloitte Access Economics believes the Turnbull Government will not be able to return the budget back to a ‘balance’ in 2020/21, he also said that on current government policies Australia will not get a surplus.
Speaking on ABC TV this morning Mr Richardson said the Labor Opposition – has had a lack of willingness to loan promise on the budget.