Question: the federal budget has estimated that the australian government will...
The Federal Budget has estimated that the Australian Government will run a budget deficit of $213.7 billion, and accumulate a net debt which will peak at $966 billion in 2024. This net debt figure is the equivalent of 44% of GDP
There is going to be a lot of concern in the general public about the growing size of the government debt.
Question: Write a simple explanation of what is meant by a ‘budget deficit’ and what causes a government’s budget deficit to rise? You should make reference to the formula for the government’s budget balance