I agree with you brucey that we will slip into recession, but the government is likely to keep pumping out stimulus packages as nearly everyone likes them...
ABC Online... The Australian Industry Group (Ai Group) says the Federal Government would be irresponsible if it did not go into deficit to stimulate the economy.
The Government is contemplating another stimulus package as the economy continues to slow and more workers lose their jobs because of the global downturn.
The Government has conceded there is very little left of the budget surplus and most economists believe Australia has already drifted into the red.
The Ai Group's Heather Ridout has told the ABC's 7:30 Report the budget is probably already in deficit for this financial year and going into the red should not be a major concern.
"We'll be in a bigger deficit next year, somewhere between $10 billion and $20 billion and we'll be in a deficit the year after," she said.
"But hopefully, given we've got a very low starting point, the idea has to be to align our long-term spending priorities, our long-term needs, with out short-term measures."
Ms Ridout says the Government should not resist further spending.
"I think we'll be in deficit this year because of the higher welfare payments and lower tax receipts, ipso facto they go together," she said.
"And we've put stimulus in so that's going to cost money and it would be irresponsible not to do that and I think the Government would get no thanks from the community or business for that."
