The Aussie Debrief May 2021

By Su-Lin Ong and Robert Thompson
Published May 12, 2021 | 5 min watch

A regular video series focused on the Australian economy

View Audio Transcript

In this edition of the Aussie Debrief, Su-Lin Ong, Chief Economist and Senior Relationship Manager, RBC Capital Markets discusses the 2021 Australian Federal Budget.

 

Key takeaways

1

A shift in the fiscal strategy is underway. Policy is being recalibrated to support the recovery amid and is designed to push the economy to full employment.

2

Expenditure is more than expected across the next 4 years with a raft of new initiatives and a distinct pink tinge with women’s economic security and health elevated in importance.

3

Despite this, the stronger recovery is delivering a better fiscal position. Gross issuance for 2021-22 will be A$130bn after a program this FY of A$210bn.

4

The reset in fiscal policy and drive for full employment dovetails with the RBA’s stance. Fiscal policy will continue to do most of the lifting but monetary policy will remain accommodative.

This video is part of our regular economic series The Aussie Debrief, with ad hoc reports brought to you as current.



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