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: explain why a government accumulates debt? Should Australia be worried about running a large budget deficit and accumulating such a large debt in current economic conditions? Provide reasons to support you answer why or why not.