How did the nation get to $1t in debt over two decades?
This article examines the factors contributing to Australia's national debt reaching $1 trillion over the last two decades. It highlights the impact of the Global Financial Crisis and the COVID-19 pandemic as primary drivers of government spending and borrowing.
Why it matters
Understanding the origins of national debt is crucial for evaluating fiscal policy and the long-term economic health of a nation.
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Share A A A When John Howard lost the 2007 election, he could proudly and correctly claim the nation’s finances had never been in better condition.
Budget surpluses and government policy such as the sale of Telstra had dramatically improved the nation’s books. Gross government debt was $55 billion or just 0.3 per cent of GDP.
Jim Chalmers is the first treasurer to oversee $1 trillion in gross government debt. Dominic Lorrimer You would have to go back to the 1910s to find debt at such a low level, when the then-Fisher government started borrowing to pay for Australia’s involvement in World War I.
But in the intervening years, gross debt has climbed and climbed and climbed – to stand at $1 trillion on Thursday, August 20.
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