Chalmers warns of budget pressure but rules out planning for recession
Treasurer Jim Chalmers says global economic pressures are growing. But Australia will avoid recession without major spending cuts.
Treasurer Jim Chalmers warned Sunday of growing pressure on the federal budget. Global conflicts and inflation are squeezing Australia's economy.
The eight-month US-led war against Iran has hurt Australian cost-of-living. The conflict cut global oil supplies and drove prices up.
Chalmers says the private sector is partly to blame for inflation. Four-fifths of economic demand comes from private spending, not government.
Chalmers said he is not planning for a recession. But he will make new budget cuts before December's mid-year update.
Inflation hit 4% in August, up from 3.5%. Interest rates reached 4.6%, the highest since 2011.
Chalmers challenged critics to name which services should be cut. This applies if they oppose government spending on Medicare, tax relief, and cost-of-living support.
- 4%
- Inflation August
- 3.5%
- Previous inflation
- 4.6%
- Interest rate
- 2011
- Highest rate since
Why it mattersBudget cuts could affect healthcare, tax relief, and welfare support Australians rely on. Rising inflation and interest rates directly hit mortgage payments and household costs.
AustraliaAustralian households face higher interest rates and living costs while the government weighs cuts to services including Medicare. Economic pressure may lead to reduced support payments or healthcare spending.
✓ Claims checked against the source and corrected before publish. checked 1 h ago
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