No one likes spending cuts and tax hikes, but on our estimate the government will soon need more of them if they are going to make a dent in looming A$70 billion a year budget deficits.
A new Grattan Institute report, Back in Black? A menu of measures to repair the budget argues the present combination of low unemployment and high inflation makes this a good time to start to put things in order.
The sooner we do, the sooner we will be well-placed to respond to future economic shocks and avoid pushing costs onto future generations.
