Promises around childcare, energy, medicines and wages will be pulled together to form the central planks of the federal budget package, which is likely to be announced just as inflation nears its forecast peak of 6 per cent costofliving budgetfederal
Extra relief on top of these core promises is unlikely as Chalmers remains concerned about the state of the budget, which is forecast to show a deficit of $80 billion this year and $78 billion in 2022-23.To the end of April, the budget was $10 billion ahead of where it was expected to be, showing a deficit of $46 billion for the first 10 months of the financial year. Revenue, largely from company tax, was $3.7 billion ahead of forecasts, while spending was $6.
Deutsche Bank senior economist Phil O’Donaghoe believes the budget is likely to finish this financial year showing a deficit of about $69 billion.Chalmers said there were growing financial pressures on the budget, which meant it would be difficult to extend the fuel excise reduction beyond the end of September.
“We have said previously, and I’m prepared to say again now, it will be difficult to find the billions of dollars necessary to extend the petrol price relief when it runs out in September. Obviously, we consider the conditions at the time, but I think Australian should consider it unlikely,” he said.
Retail trade figures from the Australian Bureau of Statistics also highlighted the impact of prices on consumers.The bureau noted that the lift in sales was being driven by both increased spending by consumers through restaurants and cafes and by “higher food prices”. The Morning Edition newsletter is our guide to the day’s most important and interesting stories, analysis and insights.
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