00:00An economic update overshadowed by a crisis.
00:06We're proceeding today releasing this mid-year budget update with some reluctance.
00:10The Treasurer's first opportunity to reshape the budget since the election, framed by a familiar narrative of...
00:17Delivery, responsibility and restraint.
00:20The budget is still in deficit, with the government spending more than revenue to the tune of $143 billion over four years.
00:28But that's an $8 billion improvement from the pre-election forecasts back in April.
00:32We've made good progress, but we know, as always, that there is more work to do.
00:38Among the handful of new initiatives, extra funding for mental health services and for the CSIRO.
00:45We believe in the crucial role that science, broadly, and the CSIRO plays in the future of our economy.
00:51There are savings too, nearly $6.8 billion from the public service, cutting back on consultants and travel.
00:57And $1.8 billion saved by changing the rules for means testing the pension.
01:02But longer term there are still spending pressures, with childcare overtaking aged care as one of the fastest growing programs.
01:09We are seeing a faster than expected uptake of early education and care.
01:15Overall, the government's new decisions since the election have reduced deficits by $2.2 billion over four years.
01:22But in the short term, it's a different story.
01:24The government has added $1.8 billion to spending in this financial year alone.
01:29And that's at a time when the Reserve Bank is on high alert about inflation,
01:34with Governor Michelle Bullock warning the next interest rate move could be up.
01:38When Labor spends, Australians pay.
01:41They will be responsible if interest rates have to rise next year.
01:45A reminder that even after the election, the cost of living is still shaping the economic story.
01:50We'll see you next time.
01:51We'll see you next time.
01:52Bye.
01:53Bye.
01:54Bye.
01:55Bye.
01:56Bye.
01:57Bye.
01:58Bye.
01:59Bye.
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