Australia's federal budget set for Tuesday under shadow of Iran war
Australian Treasurer Jim Chalmers said Tuesday's federal budget has been built around the Iran war's impact on energy and food prices. Officials say it will balance support measures with fiscal discipline.
Chalmers confirmed Treasury has cut its growth forecast for next year, citing Iran-war energy shocks. The budget is expected to include direct household income support and lift defence spending toward 2.4 percent of GDP.
The opposition calls the package election-focused, while business groups are watching mining allocations and renewable hydrogen incentives. The Reserve Bank has said it is carefully watching how the deficit feeds into inflation.
The document will also tackle regional drought and pressure on power tariffs. Treasury is targeting a deficit of about 1.3 percent of GDP this fiscal year, while public debt is projected to rise to 35.6 percent of GDP.
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