Government spending and inflation with Robert Carling - Interviewed by Emilie Dye. That government expenditure in Australia has grown apace in recent years is well-known. The growth became gargantuan during the coronavirus pandemic. However, to a less dramatic extent, it was happening before the pandemic — and has continued since it ended.

Some observers welcome this growth to the extent it is a reflection of new spending programs and expansion of existing programs perceived to meet legitimate needs. But it is also a matter of serious concern for reasons that include the implications for higher taxation and public debt, the effect on incentives and the diversion of scarce resources away from alternative and higher productivity activities.

Recently, attention has turned to the impact of higher public spending on inflation as monetary policy struggles to restore inflation to its target. Specifically, the Reserve Bank of Australia (RBA) has spoken of the high level of aggregate demand relative to the economy’s potential output. The RBA has drawn attention to the relatively rapid growth of public final demand as a contributor to excessive aggregate demand —­ although the Governor has also stated that public sector demand “is not the main game” in the policy response to persistent inflation.

Here we talk about the key facts about public expenditure growth in recent years and discuss its contribution to inflation. You can also read the policy paper here:https://www.cis.org.au/publication/government-spending-and-inflation/

International data have repeatedly shown many Australian school students struggle with mathematics. Around 10% of students achieve at a level that requires additional support (NAPLAN) or are below the international benchmark Trends in International Maths and Science Study (TIMSS) — which is the equivalent of around 400,000 Australian students per year. More than a quarter of 15-year-olds are low performers in the subject. Learn what you need to know about Why Australia Needs Universal Early Numeracy Screening. Kelly Norris is a Senior Research Associate at CIS working on evidence-based identification and intervention processes for students with or at risk of maths difficulties. Prior to joining CIS in 2024, she has worked as a university lecturer, educational consultant, product developer, consultant teacher and classroom teacher with a particular focus on effective intervention within a multitiered system of support (MTSS). She holds a Bachelor of Education, Graduate Certificate of Education (learning difficulties) and Master of Education. In the latter research she investigated strategies and tools to improve identification and support for students with mathematical difficulties. #auspol