...MELBOURNE (S&P Global Ratings) Dec. 16, 2019--S&P Global Ratings today said that it expects spending restraint by the government of Australia (unsolicited ratings; ###/Stable/A-1+) to keep the country on track to deliver a general government surplus in the next few years. The spending restraint is due to relatively weak economic conditions as weaker personal and corporate tax receipts squeeze government revenue. Strong fiscal outcomes are an important factor in our '###' credit rating on Australia (see "Strong Fiscal Outcomes Are Key to Australia's '###' Rating," published Nov. 26, 2019). The mid-year economic and fiscal outlook announced by the Commonwealth government today confirms the budget is on track to achieve a surplus in fiscal 2020, despite headwinds related to domestic consumption and corporate activity. Relatively weak domestic economic conditions are weighing on personal income and company tax receipts. On the positive side, strong employment growth is lowering government benefit...
