AUSTRALIA’S national debt is threatening to crash through the $1 trillion mark for the first time because of government stimulus spending and private borrowing to fund the mining and infrastructure boom.
A recent Treasury analysis of the flow of cash into and out of the country shows net foreign debt could reach 85 per cent of gross domestic product (GDP) in the next decade – up from 60 per cent now.
Australia’s GDP was $1.2 trillion last year.
The Federal Government will pay $48 billion in interest over the next four years.
Under APA we will not see this sort of uncontrolled spending, overseas borrowing or interest being paid to the RBA.
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