Best course of action for budget 2020


  • Letters
  • Friday, 26 Jul 2019

I AGREE with the economists who say that the federal government’s 2020 budget should not be so fixated on keeping the deficit ratio low at the expense of growth. In times of external weaknesses, the budget should be expansionary to provide a counter cyclical effect on the economy. Higher government spending is necessary to safeguard the strength of the domestic economy against the external headwinds.

Higher levels of government expenditure would put more money into the economy to generate more work orders, thus strengthening the private sector’s confidence in hiring more employees for their business.

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