• Implement Fiscal Commission to counter future budget crisis

Australia needs to strengthen its fiscal institutions and rules, and hold government to account, to prevent a future fiscal crisis, according to a new report from The Centre for Independent Studies.

Proposed fiscal rules:

• Require the federal fiscal balance to be maintained within a range of +2 to -2% of GDP on both an actual and forecast basis.
• Limit the net debt to GDP ratio to 10% (currently at 10.1% of GDP in 2012-13).
• Cap the federal revenue and expenditure shares of GDP.

Stephen Kirchner is a Research Fellow at The Centre for Independent Studies.

Strengthening Australia's Fiscal Institutions

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