The article critically analyzes Australian Treasurer Jim Chalmers's fiscal management, contrasting it with that of his predecessor, Wayne Swan. It highlights the current budget's projected deficits, exceeding 1% of GDP annually, and unsustainable spending levels (26-27% of GDP) against tax revenue well below 24%.
The author points to the substantial deficits and rising interest payments on government debt as major concerns. These deficits are contrasted with the two consecutive surpluses achieved earlier in the Albanese government's term, arguing that these previous surpluses are insufficient to address the accumulating debt.
The article defends Wayne Swan's record as Treasurer, highlighting his success in navigating the Global Financial Crisis (GFC) and subsequent economic challenges. Swan's ability to maintain fiscal discipline while managing economic downturns and a mining boom is emphasized. The article also counters criticism levied against Swan during his time as treasurer.
A key difference is presented in how both treasurers handled spending during and after economic crises. While Swan reduced spending after the initial stimulus, the article suggests that Frydenberg and Chalmers maintained elevated spending levels, leading to the current fiscal challenges.
The article concludes by suggesting that despite Swan's achievements in fiscal management, he received little political credit. It posits that Chalmers, aware of Swan's experience, has nonetheless overseen a significant deterioration in the budget's condition.