‘Close to recession’: Government spending blasted as inflation crisis deepens

Business Editor Ross Greenwood warns that government spending is fuelling inflation pressures and pushing the economy dangerously close to recession.

“The alternative strategy is to go for growth in Australia without creating inflation, without creating you know some sort of the increase in interest rates that this government is now characterised by,” Mr Greenwood told Sky News host Peta Credlin.

“The treasurer had one job, and that was to cut spending and to cut genuine spending out to try and take pressure off the Reserve Bank.

“As a result, now the moves that are made are really going to be counterproductive.

“The only other thing they can do is slow the economy down, close to recession.”