Government won't commit to net savings in December budget update
Finance Minister Katy Gallagher and Treasurer Jim Chalmers refused to commit early to net savings. This was for December's mid-year budget review.
The federal government cannot promise its December budget update will deliver more savings than new spending. Finance Minister Katy Gallagher said inflation hovers around 4.3 per cent.
The Reserve Bank prepares for another interest rate rise. Budget pressures are growing, Gallagher told ABC Insiders.
Decisions are still being made. Treasurer Jim Chalmers also declined to commit to net savings.
He said the government works hard on savings. But it cannot get ahead of unmade decisions.
The government's previous budgets delivered overall improvements to the budget position. Recent policy decisions showed more savings than spending.
The Reserve Bank's chief economist said government spending remains a contributor to inflation. This adds pressure on ministers to find cuts.
- 4.3 per cent
- Inflation rate
- Katy Gallagher
- Finance Minister
- Jim Chalmers
- Treasurer
- December
- Budget update timing
Why it mattersHigher government spending could worsen inflation. This could make the Reserve Bank more likely to raise interest rates again. That would affect mortgages and borrowing costs.
AustraliaIf the government cannot find savings, interest rate rises may continue, increasing mortgage repayments for Australian home owners and raising business borrowing costs.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
