The article named ‘MYEFO: Easy does it but we’ve got to fix the budget’ by Peter Martin published in ‘The Sydney Morning Herald’ on December 19, 2015. The article also focuses on the importance of having a stable budget in an economy and not relying excessively on the debt component. It has been observed in various studies that if an economy is stuck in a situation of excessive debt, then the only solution out of it is slow and study; there are no shortcuts. The government needs to also take into consideration the fact that any steps which it takes to recover the economy must not impact the jobs and the overall objective of economic growth. Cutting out on the spending by the government right away is not regarded as a best possible solution to bring down its debt component; doing so results in lower hopes from the government by the public. The most optimal way to bring down the debt component is to focus on the overall economy of the growth; as and when economy grows, the government collects a higher tax which would take care of repayment of the debt component. However, in the current economic environment where all the economies all across the world are interconnected, an impact on one economy certainly has an impact on all the economies associated with it. Hence, it is advisable by many economists to have a self-sustainable economy wherein any global crisis does not have severe impact on the economic performance of the nation. What one could learn from the current situation of Australia is that the budget of the nation must be set in a way that the government does not have to go through a situation wherein it has more obligations in terms of its expenditure and a very limited sources in terms of the revenues it could generate.
In conclusion, it could be said that the prosperity and the long-term survival of the economy is dependent on how the government decides to formulate its budget. Having a component of debt in the budget is quite explainable as the government does not have ample amount of funds for the purpose of investment. However, in situations wherein the government completely relies on the debt component for its expenditure and with a limited amount of sources for revenue, it becomes a serious issue for the entire nation. Hence, it is advisable that all the nations must manage their debts.