Sydney, Oct. 25 (BNA): The Australian labor government will unveil its first budget as economic growth slows at home and abroad, stressing that its spending will focus on easing the cost-of-living crisis without igniting a fire in already high inflation. .
Keen to avert Britain’s latest mini-budget disaster, Treasurer Jim Chalmers said officials have worked to ensure fiscal and monetary policies are aligned in the budget to support the Reserve Bank of Australia’s fight against high inflation, Reuters reported.
“This budget is going to be strong, reasonable and timely. You will realize that in a time of great global uncertainty, our best defense is a responsible budget at home,” Chalmers told reporters in Canberra.
Chalmers is expected to reveal improvements of just over A$40 billion (US$25 billion) in budget net profit over four years, Australian media reported. The treasurer’s office did not immediately respond to a request for comment.
Prime Minister Anthony Albanese said the budget would save costs of living without putting pressure on inflation.
The budget papers are set to show GDP growth for the fiscal year ending June 30, 2024 and will be reduced to 1.5% from the 2.5% projected in April. Gross domestic product growth is also scheduled to be cut to 3.25% from 3.5% for the 2022-2023 period, according to draft figures released by the Treasury on Monday.
The budget deficit will be much smaller than initially feared thanks to the high prices of many of Australia’s commodity exports and a surprisingly strong labor market.
SM