New Australian Government to present first national budget

The new Australian government will deliver its 2022-23 budget today.

Prime Minister Anthony Albanese’s current Labour government was elected to govern in the May 2022 general election. Treasurer Jim Chalmers has promised a responsible budget—which will likely restrain spending— in order to reel in deficit spending and support the Reserve Bank of Australia’s efforts to fight inflation. The budget will include provisions for disaster relief and social security payments, as well as regulating Australia’s national debt, which is critical for the country to maintain its AAA credit rating. The budget will also downgrade the growth forecast for the 2022-23 fiscal year to 3.25%— a quarter of a percentage point drop from the pre-election economic and Fiscal Outlook forecasts in April.

The Australian economy will likely not surpass the forecasts in the budget in the 2022-23 fiscal year given the pressures of the post-pandemic era and global crises. In the longer run, investor and credit markets will likely react well to the restraint projected in the budget. Australia will likely continue to comfortably maintain its AAA credit rating and attract increased investment in infrastructure and education.