SSgA says Budget is more than plain vanilla

State Street Global Advisers has given the Federal Budget a relative thumbs up based on it being more than a plain vanilla offering.

 SSGA APAC economist, Krishna Bhimavarapu said Treasurer, Jim Chalmers’ fourth budget was “surprisingly more than a plain vanilla offering, as a fair amount of focus is given to the wide array of important issues of the Australian economy.

“The icing is the surprise tax-cuts, which means private consumption could get a minor shot in the arm that will further accelerate the economic recovery,” he said.

“The government not only delivered healthcare relief, and cost-of-living subsidies, but also is seriously thinking about productivity, clean-energy, housing, defense, and infrastructure spending. It is impressive that the government aims to deliver this stimulus with a modest rise in the deficit. “

“Still, we think the government could do more in the manufacturing sector, whose share in GDP and employment have structurally fallen to a third around 5% over 40-years. At least we expect that discussion to dominate debates ahead of the upcoming elections.”