Federal Budget deep dive – the Labor Government’s 3rd Federal Budget

This week, the Albanese-led Labor Federal Government handed down its 3rd Federal Budget.
One of the dangers of Budget analysis, especially the type of analysis that finds its way to mainstream media, is how Federal Budgets are equated to household finances. Part of the problem is using the term ‘budget’, often used in the home reflecting a household’s natural constraints of income and spending. For those of limited means, hard budget constraints are everyday considerations.
Instead, Budgets are a nation’s policy decisions, not the state of its savings account. So, we generally baulk at the idea of balancing money ”collected” and “spent” as a misunderstanding of both history and finance.