Is the government really on an ‘out-of-control’ spending splurge? It’s complicated
News Source
•Sun, 01 Nov 2026 23:24:39 GMT
📰 What Happened
Federal spending has risen sharply, and the opposition blames it for high inflation. Total expenses grew 30% between 2021-22 and 2025-26, according to the Parliamentary Budget Office. Defence, the NDIS and health are the main causes.
Inflation reached 4.3% in the year to September, far above the Reserve Bank's 2.5% target. Fuel prices drove much of that, but underlying inflation also rose to 3.7%. A fifth rate rise looked certain.
🔍 The Backstory
Economists say the budget position matters more than the spending level. Australia has run deficits for several years, which adds demand to the economy and makes the Reserve Bank's job harder.
The Coalition has promised a $31bn savings package, mostly from climate programs and NDIS changes. Experts doubt these cuts would lower inflation much, because the biggest costs are health and disability care.
🎯 Why It Matters
Public spending shapes interest rates, services and taxes. Voters need to know whether cuts would really ease cost-of-living pressure.
Federal spending has risen sharply, and the opposition blames it for high inflation. Total expenses grew 30% between 2021-22 and 2025-26, according to the Parliamentary Budget Office. Defence, the NDIS and health are the main causes.
Inflation reached 4.3% in the year to September, far above the Reserve Bank's 2.5% target. Fuel prices drove much of that, but underlying inflation also rose to 3.7%. A fifth rate rise looked certain.
Economists say the budget position matters more than the spending level. Australia has run deficits for several years, which adds demand to the economy and makes the Reserve Bank's job harder.
The Coalition has promised a $31bn savings package, mostly from climate programs and NDIS changes. Experts doubt these cuts would lower inflation much, because the biggest costs are health and disability care.
Public spending shapes interest rates, services and taxes. Voters need to know whether cuts would really ease cost-of-living pressure.