For the first time in history, Australia’s total public debt will soon reach $1 trillion (US$639 billion) for the first time in history as government spending is expected to be extended in the next few years.
According to the newly released federal budget papers, Australia’s gross debt is estimated to grow from $895.3 billion to $927 billion in the 2022-2023 financial year before breaking the $1 trillion mark in 2023-2024.
After, the government expects gross debt to peak at $1.16 trillion in 2025-2026, which is similar to the former Morrison government’s March forecast of $1.17 trillion.
The papers said the rise in gross debt could be attributed to higher borrowing costs, a lower productivity assumption, and an upward revision in the estimated costs of delivering the National Disability Insurance Scheme….