The combination of ample system liquidity, the low cash rate and ES rate, the 3-year yield target and the expectation that policy rates will remain low for at least 3 years are underpinning low borrowing https://www.rba.gov.au/speeches/2020/sp-dg-2020-11-24.html  6/14  11/24/2020  Monetary Policy in 2020 | Speeches | RBA  rates across the economy.
Without such a match, the funding base of the public sector (taxes) will inevitably start to erode. This could lead to a vicious circle that would be difficult to reverse. This underlines the need to keep the welfare services universal (open to all) and high quality. A good example of this is the school system.