BFCSA: Australian Gross Debt $500 billion is Massive . $15 billion in interest per annum.
Gross Debt has ticked over $500 billion for the first time in Australia's history. The AOFM website noted the figure of $500.129 billion after an $800 million bond sale.
Treasurer Scott Morrison earlier told reporters net debt was coming down under the Coalition Government!!! He says "from 2018/2019 we will no longer be doing the equivalent of putting the grocery bills on the credit card. The debt we raise this year is for infrastructure."
The rate of debt growth had fallen from more than one third to less than 10%. Morrison wants Labor to apologise for Liberals bad management of the economy!
Its like watching Hewie and Douey - a train wreck in slow motion.
Shadow Minister CHRIS BOWEN said the new higher debt level was an embarrassing milestone and fiscal failure. He noted the Turnbull Government had racked up gross debt $1.66 billion per month quicker than the previous Labor Government and net debt by $511 million a month quicker - with no financial crisis to deal with. in debt in just one year. Budget papers forecast debt to hit $725 billion in 2027/28.
Economists note the debt levels rose under Labor over a six year period. Prime Minister Malcolm Turnbull had previously described (2012) the $300 billion in debt as an "almost inconceivable level." Yet the LNP has managed to run up greater debt in less than three years. If interest rates maintain the current level the interest bill would be around $15 billion per year.
The LNP have raised our debt level to $500 billion and can hardly claim to be "the money managers."