The government new budget will run a $213.7 billion deficit, the worst since World War II, with the country expected to hit a net debt of $703 billion due to the coronavirus pandemic and the economic chaos that ensued.
Treasurer Josh Frydenberg made the announcement while delivering next year’s budget, which supposed to carry us through the pandemic.
“This is a heavy burden, but a necessary one to responsibly deal with the greatest challenge of our time,” Frydenberg said.
“By comparison, Australia’s net debt as a share of the economy will peak at half of that in the United Kingdom, around a third of that in the United States and around a quarter of that in Japan today.”
The Liberals promised to bring the budget to surplus since coming to power in 2013. This year was supposed to be the year we’d achieve it.
That hasn’t happened, but clearly, no one could predict the coronavirus pandemic and the chaos it would wreak this year.
“The Great Depression and two world wars did not bring Australia to its knees and neither will COVID-19,” Frydenberg added.
More to come.
