Australian Treasurer Jim Chalmers has announced that the government is currently prioritizing repairing the budget instead of providing more relief for living costs. The federal Labor government is expecting a budget surplus of approximately $20 billion for the 2022-2023 financial year, a significant improvement from the previous year’s deficit of $32 billion.
Chalmers has rejected calls for additional government handouts to households struggling with the high cost of living, emphasizing that the surplus was achieved without sacrificing assistance to the people. He believes that the recently introduced cost-of-living measures are effective and that it is essential to have a healthier budget.
In the May budget, the federal government unveiled a $14.6 billion living cost package, which raised concerns about increasing inflation. However, Chalmers argues that responsible management of the economy does not have to come at the expense of providing cost-of-living help. He believes that a stronger budget provides a solid foundation to assist those in need.
Shadow Finance Minister Jane Hume praised Chalmers for controlling government spending and listening to the Coalition’s advice on reining in spending ambitions. Hume believes that curbing aggregate demand, including government expenditures, is necessary to reduce the cost of living.
The government has yet to announce its pick for the Reserve Bank governor’s position, with the incumbent Philip Lowe’s term set to expire soon. Lowe has faced criticism for giving unclear messages about interest rates. While Chalmers has consulted with the opposition on the issue, the timing and nature of the decision remain undisclosed. Both Chalmers and Lowe are expected to attend the G20 Finance Ministers and Central Bank Governors meeting in India in July.