Business leaders meet in Sydney to discuss Australia's upcoming budget

Senior business leaders attended an event in Sydney on Thursday, to discuss Australia's upcoming budget.

The event hosted by the Committee for Economic Development of Australia (CEDA) focused on their first research report for 2016 'Deficit to balance: budget repair options.'

The report provided an analysis as well as policy recommendations for Australia's upcoming May budget, and looked at options to bring the budget into balance over the coming years.

Reserve Bank of Australia board member Dr John Edwards told Xinhua that despite Australia experiencing 25 years of continuous growth, the budget was still running at a deficit for an eighth year in a row.

"This is ridiculous at a time when the economy's doing well, it means we're piling up debt...we're reducing our flexibility to respond to unfavorable global circumstances and it means we're passing on the bill for current spending to the next generation," Edwards explained.

He noted however that while China may not be able to help Australia's budget woes directly, it could be in other ways.

"(China's) now our biggest export market, it's getting on to be the second biggest economy in the world, if it's not already, and China's rate of growth, its economic orientation really does affect our prosperity," Edwards said.

"That of course in turn influences our capacity to deal with our fiscal circumstances."

Edwards also noted a number of Australian industries were thriving as a result of China's shifting economy including tourism and education.

The event coincided with an announcement from ratings agency Moody's that warned the Australian government must raise taxes and cut spending or risk losing its AAA credit rating.

Australian Prime Minister Malcolm Turnbull is currently in Shanghai for Australia Week in China where he launched a landing pad in the city as part of the government's National Innovation and Science Agenda.

Endit