‘Higher’ budget deficits likely when ‘inflation comes off’: Clennell

Sky News Political Editor Andrew Clennell says despite Labor’s talk of lifting wages in the upcoming budget, this will be followed by a “downgrade” two years in, due to a “prediction of a weaker labour market and weaker growth”.

“We are going to see a no-frills budget on Tuesday night, as the Albanese government seeks to deliver its election commitments, wipe out some of the former Coalition programs and give Australians an idea of some of the challenges ahead,” Mr Clennell said.

He said the budget “paints a positive enough picture” of declining deficits in 2022-23 and 2024-25, “before inflation comes off and, so says the government, does commodity prices”.

“So higher deficits as we go forward.”

Sky News Political Editor Andrew Clennell says despite Labor’s talk of lifting wages in the upcoming budget, this will be followed by a “downgrade” two years in, due to a “prediction of a weaker labour market and weaker growth”. “We are going to see a no-frills budget on Tuesday night, as the Albanese government seeks to deliver its election commitments, wipe out some of the former Coalition programs and give Australians an idea of some of the challenges ahead,” Mr Clennell said. He said the budget “paints a positive enough picture” of declining deficits in 2022-23 and 2024-25, “before inflation comes off and, so says the government, does commodity prices”. “So higher deficits as we go forward.”

Read Next