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Australia to boost spending on defence and security

Published:Wednesday | March 30, 2022 | 12:07 AM
A sign advertises the sale of an apartment in Sydney, Australia, on Monday, March 28. The Australian government was expected to reveal an economic blueprint to increase spending on defence and national security, while reducing household expenses, the treas
AP
A sign advertises the sale of an apartment in Sydney, Australia, on Monday, March 28. The Australian government was expected to reveal an economic blueprint to increase spending on defence and national security, while reducing household expenses, the treasurer said.

Australia’s government will increase spending on defence and national security while reducing household expenses, Treasurer Josh Frydenberg said ahead of revealing the budget on Tuesday. The budget is being presented with an eye on upcoming elections.

With Russia at war with Ukraine and China’s military becoming more assertive, Frydenberg foreshadowed “further investments in defence and national security, reflecting the challenges that we now face”.

The budget for the fiscal year, beginning July 1, comes ahead of general elections due by May 21, in which Prime Minister Scott Morrison’s conservative government will seek a fourth three-year term.

COST OF LIVING RELIEF

With inflation increasing in Australia and many parts of the world, driven in part by higher oil prices, the government is expected to reduce its 44.2 Australian (AU) cents (33.1 US cents) a litre (US$1.25 a gallon) tax on gasolene.

“Tonight, in a temporary, in a targeted, in a responsible way, we will provide cost of living relief,” Frydenberg said.

The Australian Institute for Petroleum said the national gasolene price average fell 5.8 AU cents (4.3 US cents) last week to AU$2.06.7 (US$1.54) per litre (US$5.86 per gallon).

Frydenberg said he would also reveal a “material improvement to the budget bottom line”.

Economists are expecting a deficit of between AU$80 billion (US$60 billion) and AU$70 billion (US$52 billion) for the current fiscal year, compared with the AU$99.2-billion (US$74.3-billion) shortfall predicted by the government in December.

AP