| Australia's fiscal outlook has weakened due to lack of support for spending cuts in the Senate and a sharp decline in key commodities prices that eroded the country's terms of trade in 2H14, says Fitch Ratings. Further deterioration in commodities prices or continued objections to spending cuts in the Senate would pose risks to the fiscal outlook.
But Australia is still well positioned relative to other 'AAA' rated sovereigns due to its low general government debt ratio and government commitment to fiscal consolidation. The Treasury's Mid-Year Economic and Fiscal Outlook (MYEFO), published on 15 December, identified two key factors behind the deterioration in the Australian fiscal position since the release of the 2014-2015 budget in May............................................Full Article: Source
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