RTTNews - Monday, Australia's Secretary to the Treasury, Ken Henry said the need for fiscal stimulus will abate over time and the key drivers of economic growth would again be related to population, participation and productivity.
In an address to the Australian Industry Group, Henry said, Economic downturns often catalyze necessary structural change. He added, Short term fiscal stimulus helps. But its palliative effect is necessarily temporary. This is why the stimulus measures and guarantees of banking system liabilities have exit strategies.
Further, he said the government has a deficit exit strategy to return the budget to surplus by containing growth in real federal government spending once economic growth is above trend and allowing tax receipts to recover naturally as the economy improves.
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