, Chalmers was keen to stress that even with energy bill rebates, a freeze on the cost of medicines and further rent assistance, his budget would fight inflation, not make it worse.
In an interview with the ABC, the treasurer continued to insist that a combination of major tax cuts and household payments wouldn’t pour flames on the inflation fire.
“The Reserve Bank will take its decisions independently. I take responsibility for my part of the inflation fight and the budget is making a big effort in that regard,” he said.
“This budget is about easing cost of living pressures, it’s about putting downward pressure on inflation, at the same time as we invest in the future.”
But Chalmers refused to accept he and his budget decisions could be held to blame if the Reserve Bank of Australia were to raise interest rates later this year, saying that wasn’t “the only measure of a decent budget”.
“I don’t tell the Reserve Bank how to do its job and it doesn’t tell me how to do my job,” he said, when pressed on whether a rate hike would be a “shattering verdict” on the budget.
“I’m very confident in this budget that we’re putting downward pressure on inflation, that we are being part of the solution to inflation rather than the problem.
“And that’s because of the spending restraint, the responsible economic management and the way we’ve designed our cost of living help.”
Shadow treasurer Angus Taylor said the document was a “political budget” that sought to “put a Band-Aid on a bullet wound” regarding inflation.
“You should be dealing with the source of the problem when inflation is raging,” he told Ferguson.
“The government isn’t because it’s a political, big-spending budget, designed for an election and not a cost of living crisis.”
Despite this, he said the opposition would support billions of dollars in subsidies for struggling Australians contained in the budget but “not because we think that’s ultimately the right answer”.
In the latest budget announcement, Treasurer Jim Chalmers emphasized that despite various benefits like energy bill rebates, medication cost freezes, and rent assistance, the budget is aimed at combating inflation rather than exacerbating it. Chalmers defended his budget in an ABC interview, stating that the tax cuts and household payments included would not contribute to inflation. He also emphasized the importance of the Reserve Bank’s independent decision-making process. Despite shadow treasurer Angus Taylor critiquing the budget as a “political budget” that does not address the root cause of inflation, the opposition plans to support subsidies for struggling Australians outlined in the budget. Chalmers remained confident that the budget is designed to alleviate cost-of-living pressures while contributing to lowering inflation through responsible economic management and spending restraint.\
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