And it does not account for spending at the state and local government levels”. In a similar vein, the Australian Industry Group (AiG) noted that government spending accounted for 90% of the nation’s economic growth in 2023 and 2024, which it argues has driven the nation’s inflation shock. As Brooker’s chart shows clearly above, day-to-day government spending has been rising as a share of the economy since around 2015. Much of the recent expansion in government spending relates to the NDIS, which has contributed to the productivity malaise. The bottom line is that excessive government spending is helping to fuel inflation while also contributing to the nation’s productivity malaise.