Australia to increase spending on defense and security

By AP News

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CANBERRA, Australia (AP) — Australia’s government will increase spending on defense and national security while reducing household expenses, Treasurer Josh Frydenberg said before he reveals the budget Tuesday made with an eye on upcoming elections.

CANBERRA, Australia (AP) — Australia’s government will increase spending on defense and national security while reducing household expenses, Treasurer Josh Frydenberg said before he reveals the budget Tuesday made with an eye on upcoming elections.

With Russia at war with Ukraine and China’s military becoming more assertive, Frydenberg foreshadowed “further investments in defense 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.

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 cents (33.1 U.S. cents) a liter ($1.25 a gallon) tax on gasoline.

“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 gasoline price average fell 5.8 AU cents (4.3 cents) last week to AU$2.06.7 ($1.54) per liter ($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 ($60 billion) and AU$70 billion ($52 billion) for the current fiscal year compared with the AU$99.2 billion ($74.3 billion) shortfall predicted by the government in December.

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Author: AP News

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Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

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