2023-05-07 23:41:25
Australia’s centre-left Labor government said on Monday it would include A$14.6 billion ($9.84 billion) over four years in the federal budget to provide cost-of-living relief for families and businesses , and promised not to fuel inflation.
The plan is designed to directly alleviate pressures on prices and inflation, the federal government said, which declined in the first quarter but remained near 7.0%, its highest level in 30 years. .
“The centerpiece of the budget … will be cost-of-living relief that will not make inflation worse,” Treasurer Jim Chalmers said in a statement ahead of Tuesday’s federal budget.
“People are under the pump. We have carefully calibrated and designed this budget to ease pressure on the cost of living rather than aggravate it.”
The government is expected to unveil financial assistance in the budget for more than 5 million low-income families, small businesses and retirees struggling with high electricity bills.
Mr Chalmers has repeatedly said his budget will be moderate on spending so as not to add to inflationary pressures, while providing some relief, after the Reserve Bank of Australia (RBA) stunned markets last week by raising its rates, defying the expectations of traders who were planning for an extended pause.
On Friday, the RBA warned that inflation risks were on the rise due to weak productivity growth, rising energy prices and soaring rents.
The latest relief measures come after the government set aside A$11.3 billion for rising elderly wages over four years, while announcing an additional 5% tobacco tax and 2, A$4 billion in additional taxes on oil and gas producers.
The budget is expected to show Australia’s deficit shrinking sharply as its coffers are filled with tax revenues from commodity exports, but the outlook will be subdued as fiscal challenges loom.
($1 = 1.4830 Australian dollars)
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