Labor hides federal budget deficits

Deloitte Access Economics has forecast that the federal budget will spend $99 billion off-budget over the next four years, with off-budget spending referring to when governments label spending as an investment rather than an expense.

Deloitte Access Economics’ prediction represents a $10 billion increase on the December Mid-Year Economic and Fiscal Outlook (MYEFO), due to new spending measures such as a further injection of $3 billion into the National Broadband Network.

The following chart from The AFR shows the expansion in “off-budget” spending.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.