Govt 'must spend budget surplus to keep economy afloat'
A senior Australian economist has urged the Federal Government to spend its way out of trouble, regardless of whether it leads to a budget deficit.
The chief economist for Westpac Bank, Bill Evans, has told a conference in Hobart that the government must spend heavily to keep the economy afloat.
He says keeping the budget in surplus would not be responsible financial management.
"We've already seen a very laudable $10 billion stimulus coming from the government, but we need to see more of that, and we need to certainly accept that there's nothing wrong, in fact it's responsible to have a deficit in this environment," he said.