Pre-election budgets typically mean a spending splash. Will this one be any different?
The government has pre-announced plenty of its budget initiatives. Still, economists are alert for a pre-election spending splash.
Treasurer Jim Chalmers is handing down his fourth budget this week. While many of the challenges have endured since his last budget — including the cost of living and inflation — there's now additional geopolitical uncertainty to add to the mix and an increasingly vocal crowd of economists warning about the structural deficit.
Here’s what you need to know about the key economic data releases this week.
Federal budget
What: 2025 federal budget release, Treasurer Jim Chalmers speech
When: Tuesday 25 March 2025
What to expect: The 2025 budget is going to be the biggest focus of the week for economists. Given this is a pre-election budget, most of them are expecting a boost in spending initiatives and will be looking closely to see if any threaten the inflation trajectory.
Chalmers will deliver a speech on budget night that will aim to weave a narrative about the government's economic management and plans for the period ahead. However, as Westpac head of Australian business and industry economics Sian Fenner said in a note, the budget itself is “unlikely to contain any significant surprises” with pre-election measures already announced or flagged. This includes an extension to energy bill relief unveiled on the weekend.
