Budget will spread the butter very thinly

ALMOST every Federal Budget contains at least one positive curve ball to make sure the punters are paying attention. But judging by how hard Treasurer Jim Chalmers is playing down this, his first Budget, as “bread and butter” and “won’t be fancy”, then the pitch is likely to go straight through to the catcher.

Mr Chalmers has made no secret of this document being the product of

“tough decisions” as the Labor government embarks on a period of budget repair in the wake of the coalition government’s expenditure through the pandemic.

While he concedes Australia can’t hide from economic fallout of war in Ukraine and the possibility of the US tipping into the abyss of a recession, a $50bn improvement to the budget defecit thanks to low unemployment and high commodity prices will lay the foundation to bolster our fiscal defences and lead into a more substantial budget in May 2023.

Much attention will be on Mr

Chalmers responses to cost of living pressures as inflation runs at a 30-year high of 6.8 per cent and is set to peak at 7.75 per cent in December. The treasurer has hinted at “responsible" cost of living relief, but motorists emptying their wallets at the petrol bowser cannot expect any help as the governent insists it will not bring back the coalition’s fuel excise.

In NQ attention also will be paid to Labor’s consideration of the previous goverment’s commitment to Hells Gate Dam - but that doesn't look promising.

At best, Mr Chalmers’ first budget will be about stemming the bleeding and buying time to lay out a solid plan between now and the May budget and then charting a course toward budget surplus well into the future.