Balancing the budget will be more painful

The ratings agencies have shown that they are full of Christmas cheer by maintaining Australia’s AAA credit rating even though the Mid-Year Economic and Fiscal Outlook revealed that the budget deficit will be a cumulative $10bn higher over the next four years. But even the patience of the ratings agencies will run out before long, especially as the Treasurer will now need to inflict more pain on households and businesses if he’s going to balance the budget.