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Albanese Flags Hard Decisions as Calls Grow for Deeper Budget Cuts
Albanese signals hard budget decisions as calls grow for deeper cuts, blaming the Coalition for blocking savings measures.
Key points
- The Reserve Bank raised interest rates for the fifth time this year to 4.85 per cent, an 18-year high.
- New spending cuts could be introduced as early as the mid-year budget update next month.
- Opposition treasury spokesman Tim Wilson said the government has a spending addiction.
Why it matters. Further spending cuts could be introduced at the mid-year budget update as the government tries to curb stubbornly high inflation that has driven the Reserve Bank to raise rates.
Prime Minister Anthony Albanese signalled tighter spending after the Reserve Bank raised interest rates for the fifth time this year to an 18-year high of 4.85 per cent on Tuesday. Speaking in Antigua and Barbuda, he said the government needed to look closely at savings and accused the Coalition of rejecting a range of savings measures. Cuts could come as early as the mid-year budget update next month, Albanese said.
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Albanese Flags Hard Decisions as Calls Grow for Deeper Budget Cuts
Prime Minister Anthony Albanese has signalled tighter government spending to curb stubbornly high inflation. His comments follow the Reserve Bank's decision to lift interest rates for the fifth time this year, to an 18-year high. New spending cuts could be introduced as early as the mid-year budget update next month. Albanese also criticised the opposition for blocking cuts. Calls for steeper reductions to the budget are growing. The government has framed the decisions as hard but necessary.