Australia’s centre-left Labor government said on Monday it would include A$14.6 billion ($9.84 billion) in the federal budget over four years to help families and businesses with living costs, which it promised would not fuel inflation.
The plan is designed to directly ease price pressures and inflation, the federal government said, which eased in the first quarter but is still near 30-year highs of 7.0%.
“The centerpiece of the budget … will be cost-of-living relief that does not add to inflation,” 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 reduce cost-of-living pressures, rather than increase them.”
The Government is set to unveil financial help in the Budget for more than 5 million low-income families, small businesses and pensioners struggling with high electricity bills.
Chalmers has repeatedly said his budget will be tight on spending to avoid adding to inflationary pressures, while providing some relief after the Reserve Bank of Australia (RBA) stunned markets last week by raising rates, beating traders’ expectations for a longer term. pause.
The RBA warned on Friday that the risks to inflation were pro-inflationary given low productivity growth, rising energy prices and a sharp rise in rents.
The latest relief measures come after the government committed A$11.3 billion to pay increases for seniors over four years, while also announcing an additional 5% tax on tobacco and A$2.4 billion in higher taxes on oil and gas producers.
Australia’s deficit is expected to narrow sharply, the budget is expected to show, as its coffers are boosted by unexpected taxes on commodity exports, yet the outlook will be sober as fiscal challenges emerge.
Read Now:The Sixth India Canada Ministerial Dialogue on Trade and Investment (MDTI) in Ottawa