Treasurer Josh Frydenberg and Finance Minister Mathias Cormann delivered the bad news this morning, the economy is in a shocking state. The deficit for 2019/20 was $86 billion, with an optimistic forecast of a blowout of another $184 billion in 2020/21, the highest ever for one year. Where is the claimed $5 billion surplus, printed on mugs for us mugs, a distant memory that never was! The official forecast for unemployment is over 9% by the end of the year, a figure that no one believes, more like 15% to 20% and rising. The national debt stood at $488 billion at the end of June, and optimistically is expected to reach $677 billion next financial year. With years of deficits ahead Australia's debt will soon mushroom to over one trillion dollars.

When questioned by a reporter about this massive debt level, Mathias Cormann, who is "retiring" at the end of the year, with a shrug of the shoulders, and a degree of indignation said; "What else could we do?"

For years the Coalition preached economic conservatism, while our debt grew year by year, from taking office in 2013 the Coalition managed to double national debt in about four years. $175 billion when Labor left office, September 2013, the Coalition then increased it to $350 billion by December 2017.

Someone answering Mathias Cormann's question, might say; "Stop the pretence you are the gurus of economic managers, your past record gives lie to that, and admit you panicked when Covid-19 hit and splashed the cash like a drunken sailor, wasting most of it with Bandaid solutions." This economic mess will take years, more likely decades, to clean up, long after Cormann has "retired" into a very well paid cushy job somewhere.

Where is the claimed $5 billion surplus, printed on mugs for us mugs,
Paul1405,
?? Are you a full-blown drongo ??

Criticism from an economic pinhead, ho hum!

Debt levels will explode in coming years, and I doubt whether all that debt will ever be repaid. There could be large-scale write offs.

In the current climate, Australian govts will merely argue our debt is lower than most, so they will keep on borrowing. Like a stack of cards, waiting to fall, but never does because govts keep printing money.

I understand the immense policy difficulties, but i do find it a bit annoying that my own fiscal conservatism counts for little as govts merely pump money to reward risky investments and those high in debt.

All I/we can do at a personal level, as i have been saving for over 12 years to people, is to reduce your own personal debt levels, as future decades are uncertain.

Who knows what govts will come up with in terms of saving the economy, but it could be ugly.

Sooner or later, govts will have to stop printing money and face some hard realities.

The whole damned World is in an economic spiral dive from the stall that is COVID-19 & only with the correction of the 'Right" rudder can we pull out.
For our resident git to turn around & mock the surplus prediction from times when all was fairly ok is nothing short of extreme mindlessness !
Is any wonder the whole show is collapsing with such mentality abounding ?

As usual, people will be expecting the people who caused this economic disaster - politicians - to fix it. Mission impossible!