Study Links Inflation, Private Sector Stagnation to Government Spending Surge

The study says that government spending has surged by 94 percent since 2014.

Customers sit outside a food kiosk in the central business district in Sydney, Australia, on Aug. 16, 2022. Lisa Maree Williams/Getty Images

New research from the Centre for Independent Studies (CIS) reveals that government spending is fuelling inflation, while private sector growth has stagnated, signalling a potential structural shift in Australia’s economy.

The findings come against the backdrop of Australian Bureau of Statistics data confirming an increase in government spending by 1.4 percent.