Save Share Future governments face a âhell of a challengeâ to repair the nationâs finances and will eventually need to return to âguard railsâ that target a balanced budget, former federal Treasury boss Ken Henry says. Following almost $300 billion in fiscal stimulus in response to COVID-19 and more big permanent spending in last weekâs federal budget, Dr Henry said the traditional medium-term goal of balancing the budget over the economic cycle had been âsuspendedâ. Ken Henry says the budget rules have been suspended, but must ultimately return when the economy recovers. Louie Douvis âI think the times demand something different â the medium-term fiscal framework is not appropriate in the present circumstances,â he said at an Institute of Public Administration Australia event in Canberra on Monday.