Politics · Australia · 2 hrs ago
Gallagher will not promise net spending cuts in budget update
Australia’s Finance Minister Katy Gallagher will not promise net spending cuts in the government’s upcoming budget update.
She said pressures on the federal budget are growing and no government program will be spared a review as ministers look for savings.
The review comes as inflation reached 4.3 per cent in the year to September, and the Reserve Bank is expected to raise interest rates.
Gallagher argued that government spending is not the main cause of inflation, but said the budget must help contain price pressures.
Rising costs and demands on public services are squeezing the budget, including spending on disability support, health care, aged care and defence.
Gallagher and Treasurer Jim Chalmers will meet in the coming weeks to identify savings ahead of the mid-year budget update.
She also defended a planned $250 working tax offset, saying it is already included in budget forecasts.
Finance Minister Katy Gallagher has refused to promise that the government will cut more spending than it adds in its upcoming budget update.
She said rising pressures on the Commonwealth budget had prompted an intensive search for savings across departments and programs.
Gallagher identified the National Disability Insurance Scheme, Medicare, aged care, defence and interest payments on government debt as major sources of pressure.
She said no portfolio would be exempt from examination as ministers prepare spending proposals.
Gallagher and Treasurer Jim Chalmers are due to hold meetings over the coming weeks to identify possible cuts ahead of the mid-year budget update.
- Who
- Finance Minister Katy Gallagher said the government would not promise net spending cuts. Treasurer Jim Chalmers is also involved in the search for savings.
- What
- Gallagher declined to guarantee that Labor will cut more than it spends in its upcoming budget update.
- When
- She made the comments on November 1, 2026. The mid-year budget update is upcoming.
- Where
- Not stated
- Why
- Gallagher said pressures on the Commonwealth budget are increasing and the government must examine spending. She also said the budget should help contain price pressures.
This story does not have two clearly opposing sides.
Inflation rose to 4.3 per cent in the 12 months to September.
Gallagher said she could not guarantee net spending cuts in the upcoming budget update.
The Reserve Bank was expected to raise interest rates.
Gallagher and Chalmers were due to hold meetings to identify savings ahead of the mid-year budget update.
Labor’s planned $250 working tax offset was due to take effect.
- Inflation
- 4.3 per cent in the 12 months to September
- Projected federal debt
- More than $1.2 trillion by 2030
- Projected deficits
- $150.5 billion cumulatively over five years
- Planned tax offset
- $250, due to take effect in July
- Major budget pressures
- NDIS, Medicare, aged care, defence and government debt interest payments
What people are saying
The pressures on the budget are increasing, not decreasing.
The budget’s got to play a responsible role.
I don’t want to pre-empt the ERC process.
I’ve got a role as finance minister to say no to a lot of people.