We have forgotten the fiscal discipline that built our prosperity
Without credible guardrails to contain spending and debt, Australia risks leaving the next generation with a weaker economy and fewer options.
Growing up in Newcastle in the 1990s, I spent hours riding bikes and surfing at some of Australia’s best beaches. I benefited from a strong education and healthcare system, the longest run of economic growth in Australia’s history and a solid fiscal position. That was partly because earlier governments had restored budget surpluses after the recession.
The outlook for young Australians today is starkly different, and I fear for their future.
The burden of rising government spending, much of it funded by debt, is eating away at their future prosperity. At the same time, global instability is intensifying cost-of-living pressures, tempting governments to offer more cash handouts that could fuel inflation and cause further fiscal damage.
Despite these pressures, there are few guardrails in place to contain spending splurges. The federal budget is in deficit and, while some state governments expect to return to surplus over the next few years, large upward revisions to employee costs, infrastructure projects and programs such as the NDIS have become commonplace.
