Co-operation and Development Debt is calculated as the sum of the following liability categories (as applicable): currency and deposits; debt securities, loans; insurance, pensions and standardised guarantee schemes, and other accounts payable.
According to our mate, government debt stands at $536 billion. To measure debt levels, I primarily used data from the Australian Bureau of Statistics (ABS), 55120. Concepts of debt Before analysing historical trends in Australia’s public debt, it is important to understand the concepts of gross debt and net debt and what information they provide. Changes in government debt over time primarily reflect the impact of past government deficits. Has net debt doubled under the current government?
Australia’s $536 billion of government debt is a big number but it’s not a reason for us to be worried, write David and Libby Koch.David and Libby Koch don’t think Australia’s government debt is in a danger zone.We have this good friend who regularly tells us how much government debt has risen, the interest bill the country is paying and that the economy is therefore a disaster waiting to happen. The Trading Economics Application Programming Interface (API) provides direct access to our data. Total Government Debt is the gross sum of liabilities across federal, state and local Government in Australia.
Illustration: John TiedemannDespite all the doomsayers, Australia’s economy has been outperforming most of the world’s industrial powerhouses.Australia’s government debt as a percentage of GDP is currently around 41 per cent but has risen 25 per cent since the Global Financial Crisis in 2009.Yes, that increase has to be addressed because only Spain and Japan have had a bigger debt increase in the period, as other countries have tried to slow or reduce debt.Hopefully the latest figures showing an early return to Budget surplus will slow our debt increase.The International Monetary Fund is forecasting it will drop in the next five years.Even so, our government debt as a proportion of GDP is less than half the level of most major industrialised economies such as Japan (236 per cent), Britain (86 per cent), Germany (60 per cent), the US (108 per cent), Canada (86 per cent) and France (96 per cent).“All that means is that we’re the best of a bad lot, shouldn’t we have no debt?” we hear you say. Notes: This interactive graphic displays gross government debt for the globe. Copy the URL to open this chart with all your selections.Use this code to embed the visualisation into your website. Latest available data for a fixed period,
It is a key indicator for the sustainability of government finance.
Australia’s government debt as a percentage of GDP is currently around 41 per cent but has risen 25 per cent since the Global Financial Crisis in 2009. We explain patiently that it isn’t as bad as he’s describing and he always replies with a glib one line response he has picked up from some conservative right-wing commentator on TV.But of late the “government debt crisis leading to our ruin” myth seems to be spreading as conservative politicians and commentators preach doom and gloom.So let’s explain the facts once and for all about Australia’s government debt and put it in perspective.First up … yes Australia is in debt.
General government debt-to-GDP ratio measures the gross debt of the general government as a percentage of GDP.
And you make a good point.Yes, debt has to be at manageable levels but given the size of our economy, our relatively small population and our big infrastructure projects we’ve always had to borrow to grow.The key is making sure it’s good debt, invested in projects that add value to the economy.A better, and more realistic, indicator of how manageable out debt levels are is to use the “net debt” measure.For example, when you or the bank measures your personal net debt position they’ll start with your loans and then offset that amount with savings, investments and money owed to you.If you have $100 of debt but $30 in savings, $20 in investments and $10 owed to you the net debt position is $40.David and Libby Koch say now is a god time to think about your personal debt too.It’s the same with a government.
The total value of outstanding Australian government …
License : CC BY-4.0 536 thousand million dollars.The value of Australia’s gross domestic product (products and services we produce each year) is valued at $1.42 trillion.Think of GDP as the income the country earns a year … 1420 thousand million dollars.You see it’s pretty naive to quote government debt levels without comparing them to the earning ability and growth of the economy.While debt has grown, so has the size of the Australian economy, and at a world-class rate.From the last economic recession in 1991-92 until last financial year, the Australian economy has grown on average 3.2 per cent a year — well ahead of the US (2.5 per cent), Britain (2.1 per cent), France (1.6 per cent), Germany (1.4 per cent) and Japan (0.9 per cent)Australians don’t need to worry too much about government debt. Organisation for Economic Co-operation and Development (OECD)
NSA
debt, for both the Australian and State governments. Source:
Government Debt to GDP in Australia averaged 24.41 percent from 1989 until 2019, reaching an all time high of 45.10 percent in 2019 and a record low of 9.70 percent in 2007.