The threat of early elections has driven Australia’s ruling conservative government to cater the budget to its core constituencies, small businesses and middle class families with children, at the expense of structural reforms, analysts said.
“It looks like an election budget – the government has substantially spent on this budget and pushed off returning to a surplus into the distance,” University of Sydney’s lecturer in politics & public policy, Peter Chen, told CNBC. “This is not an economists’ budget but a political budget…and all the major provisions are aimed at the coalition’s base.”
For more than a decade, Australia’s economy has been fuelled by a mining boom – but a collapse in commodity prices is slowing economic growth and reducing tax receipts.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.