(Feb 19): Australian governments are spending at an “unsustainable” pace and public debt is set to rise further, leaving the economy more vulnerable to future shocks, a report by the e61 Institute and McKinnon found. “There is no imminent debt crisis, but with renewed pressures ahead like an ageing population and slow productivity growth Australia’s fiscal options are narrowing,” Brennan’s team said in the report released Thursday. While the RBA cited excess demand running up against supply constraints for its decision, former Governor Philip Lowe also this week criticised the government’s spending trajectory and sluggish productivity growth. However, its gross debt position has deteriorated to 13th among 38 countries in 2023 highlighted in the report, from 3rd in 2007. A mid-year fiscal update in December showed Prime Minister Anthony Albanese’s Labor government is facing deep budget deficits across its forecast horizon through fiscal 2029.

Source: The Edge Markets February 19, 2026 03:47 UTC