Australia will increase spending on defense and security

CANBERRA, Australia – The Australian government will cut spending on defense and national security as it cuts household spending, Treasurer Josh Friedenberg said on Tuesday, ahead of the release of the budget ahead of the upcoming election.

As Russia’s war with Ukraine and China’s military grew stronger, Friedenberg “predicted more investment in defense and national security that reflects the challenges we now face.”

The budget, which begins July 1, comes before the general election on May 21, when Prime Minister Scott Morrison’s Conservative government will seek a fourth three-year term.

With rising inflation in Australia and driven by higher oil prices in many parts of the world, the government is expected to reduce its 44.2 Australian cents (33.1 US cents) per liter ($ 1.25 per gallon) tax on gasoline.

“Tonight, in a temporary, targeted way, in a responsible way, we will provide life-saving relief,” Friedenberg said.

The Australian Institute for Petroleum says national petrol prices fell by an average of 5.8 AU cents (4.3 cents) last week to AU $ 2.06.7 ($ 1.54) per liter ($ 5.86 per gallon).

Friedenberg said he would publish “material improvements in the bottom line of the budget.”

Economists expect a deficit of between AU $ 80 billion ($ 60 billion) and AU $ 70 billion ($ 52 billion) in the current fiscal year, compared to the government’s deficit of AU $ 99.2 billion ($ 74.3 billion) in December.