Australia to Run Economy Hot in Budget Geared Toward Jobs Blitz
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Australia will run its economy even hotter, joining the U.S. and Europe in holding open the fiscal spigot in tandem with monetary policy as they try to drive down unemployment and revive inflation.
Treasurer Josh Frydenberg’s 2021-22 big budget spend aligns both economic orthodoxy and the political needs of a government with an election due in a year. The deficit will be A$106.6 billion in the 12 months through June 2022, exceeding economists’ A$80 billion estimate. That reflects higher outlays for infrastructure, aged care and tax breaks.