The government's focus on slashing the budget deficit and reducing public debt is worsening the impact of recession on households and businesses, according to a group of economists. The group said an infrastructure deficit put at $104 billion was the result of successive governments' underspending, leaving the country ill-prepared for the future. "Private sector debt is being driven upwards by your government's fiscal policy in pursuit of surpluses for itself and its aim of rapidly reducing public debt. Not partisanPhoto: SuppliedThe group includes former productivity commissioner Ganesh Nana, whose department was one of the early casualties of the coalition government's public service crackdown. Group spokesperson Nana said it rejected any accusation that it was partisan and out of touch with mainstream economists' views.

Source: Stuff November 21, 2024 08:05 UTC