Australia to raise spending to boost slowing economy

By ROD McGUIRK
Associated Press

CANBERRA, Australia (AP) — Australia’s new government plans to raise spending on families, the elderly, defense and Pacific neighbors to counter an economic slowdown due to rising interest rates, inflation and floods. Treasurer Jim Chalmers delivered Tuesday his center-left Labor Party’s first annual budget for the fiscal year that began in July. It is the first budget by a Labor government in nine years. The new government is contending with unprecedented levels of debt that mounted during the COVID-19 pandemic. Chalmers said inflation was the primary influence on his economic blueprint. Inflation is forecast to peak at 7.75% by December and remain higher for longer than had previously been expected.