Warning over the one ‘big test’ that looms ahead of budgetThe opposition has labelled the situation as ‘really worrying times’.2 min read

7NEWS

Apr 15

The opposition is ramping up pressure on Treasurer Jim Chalmers to rein in spending ahead of the federal budget, with Nationals senator Bridget McKenzie warning the government must make “tough ...

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And we’ve had another downgrade of our productivity levels.”Taken together, she said, those factors meant Australia was poorly positioned to absorb further economic strain.“We are in a much weakened state as a country,” she said.McKenzie said the government’s spending approach would now be critical in determining how well the economy weathers the downturn.“This government needs to get its spending profile under control.Be the first to know: Add 7NEWS as your preferred news source on Google“The big test for the Treasurer at this upcoming budget is will we for the first time in four years make the tough decisions that our whole economy needs if we’re going to save our country from the very worst of this global crisis.”McKenzie warned that rising inflation would have broad consequences across the economy, not just for vulnerable households.“Inflation is related and dependent on government spending... that’s what Jim needs to address at the budget,” she said.Nationals senator Bridget McKenzie has warned the government must make “tough decisions” ahead of the budget in a Sunrise appearance with Housing Minister Claire O’Neill.  Credit: SunriseThe warning comes as the war in Iran continues to disrupt global markets, raising fears of a broader economic downturn and adding pressure on Australia’s inflation outlook.Housing Minister Clare O’Neil acknowledged the challenge facing the government as it prepares its May budget.“We’ve got to think about managing what’s going on in Iran and the context of us needing to find fuel for the country,” O’Neill said.“But the second thing we need to do, and this is absolutely imperative for the government leading into the budget, is think about Australian households. There is a lot of uncertainty for Australian families at the moment, and we absolutely recognise that people were already under pressure before we saw those increases to fuel prices.”She said the government’s focus was to protect Australians from “the worst of this” while managing global economic shocks.The federal budget will be handed down on May 12.Barnaby Joyce refuses to condemn Trump’s expletive-laden Iran threat2 min readIran holds upper hand in Hormuz stand-off, expert warns2 min read","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"}}}