Josh Frydenberg keeps telling us that, now that the budget is back in surplus, he will be able to pay down Labor’s debt. This will save us a kazillion on interest payments that will be spent on schools and hospitals.
Yeah … right.
Ignoring the fact that most of the debt has accrued under the Coalition government, MYEFO shows that, despite expected budget surpluses over the forward estimates, Australian Government Securities (AGS) on issue, otherwise known as gross debt – the thing we pay interest on – will increase from $556 billion at the end of this financial year to $576 billion by the end of the forward estimates.
No wonder Frydenberg wants interest rates to keep dropping.
Also mentioned in MYEFO was that, from next financial year, the underlying cash balance will, for the first time, include expected net Future Fund earnings – over $5.5 billion a year and rising.
Another way to boost the bottom line without having to do a thing.
They will need whatever they can get because the cost of their war toys keeps blowing out by astronomical sums.
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