Budget deficit could hit future generations hard if not managed correctly

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Holly Stearnes 

But in regards to the rest of the world, obviously, the globe is watching on as Australia puts forward its budget as we the first one of the First Nations to begin our financial recovery. How do you think we’re going to be sitting in regards to the rest of the world when it comes to financial recovery for businesses? And that kind of thing?

Bill Lang 

Yeah, well, look, you know, Australia has, had a very good track record in recent years in terms of managing its debt levels. And having budgets being on the way back to being they call it surplus, the politicians, that means in profit, you know, more cash coming in than going out. Now we’re in a deficit, which means we’re making a loss, there’s more cash going out than coming in.

But compared to many other countries, we are very well placed when you look at the various analysis and the ratios and things. But again, you just can’t keep borrowing money, someone’s going to have to pay it back. Holly, people of your generation, they’re going to have to pay this money back in the future. So while the good times roll, it’s not like a buy now, never pay back. You know, we’re all going to have to pay it back.

So it is important that when the government goes into loss or goes into deficit, the money’s going towards things that are going to make the country more productive, increase the level of income, increase the level of taxes, so those things can be paid back.