Economist: Australian govt can afford to spend big in budget

Author
Newstalk ZB,
Publish Date
Tue, 11 May 2021, 7:27PM

Economist: Australian govt can afford to spend big in budget

Author
Newstalk ZB,
Publish Date
Tue, 11 May 2021, 7:27PM

Record investment is tipped to be in Australia's Federal Budget, that's released tonight.

It's expected to pump billions of dollars into the economy, as the Government focusses on recovering from the pandemic.

Aged care, childcare, infrastructure and job creation are some areas seeing a cash injection.

HSBC chief economist Paul Bloxham told Andrew Dickens the Government can spend the cash because the economy's doing better than expected.

"We're in upswing, we've got the Covid numbers under control and of course we've got that extra tailwind from the much higher iron ore and general commodity prices which is boosting national income."

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