The Federal Budget will be handed down next Tuesday, 29 March, against the backdrop of the ongoing pandemic, floods across parts of Queensland and NSW, and war in Europe. Plus, with an upcoming election, the government will be looking to shore up its appeal with voters.
Treasurer Josh Frydenberg provided some hints of what to expect in a speech last week. He emphasised that “fiscal settings need to be normalised” and that the time for “large scale economy-wide emergency support is over”. In other words, it is time to tighten the purse strings.
The government wants to begin a “gradual and measured” consolidation to rebuild fiscal buffers so that in the future “we have firepower to respond”. But at the same time, cost of living pressures are building. And the government will be under pressure to provide support to those in need.
So, what does this mean in practise for the budget bottom line?
Download – 21 March 2022 Weekly economic outlook
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