Australian government to give budget update, top credit rating at risk

SYDNEY (Dec 19): Australia's conservative government will on Monday give an update on the national budget that could trigger a downgrade in the country's prized triple A credit rating and push up borrowing costs on over a trillion dollars of debt.

Facing slowing economic growth and a seemingly intractable deficit, Treasurer Scott Morrison is expected to reaffirm a pledge to return to surplus by 2020/21 through a mixture of spending cuts and tax-raising measures.

Many of the most contentious measures, however, are blocked in the Senate while record low wages growth and lackluster nominal growth have badly crimped the government's revenue take.

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