The federal government could slash its borrowing by billions of dollars over the next two years if officials change how they manage Australia’s near $1 trillion debt pile, a move that is at odds with other countries rapidly increasing spending on energy and defence.
Ahead of next week’s budget, Commonwealth Bank said it expected the government’s debt agency, the Australian Office of Financial Management, to tap the bond market for $115 billion in the next financial year. This year the government is said to have issued $125 billion worth of debt.
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