How to Reduce the Budget Deficit, Without Really Trying

The Australian economy just got bigger, thanks to the adoption of the new national accounting standard SNA08. The revised data raise the level of nominal GDP by 4.4% for 2007-08. As the government was quick to point out, this reduces the estimated budget deficit for 2009-10 from 4.7% to 4.5% of GDP, as well as the expected net debt to GDP ratio.