Economy
Background
National accounts data for the December quarter showed public sector demand growing at a rate more than double that of private sector demand, marking the second consecutive quarter of this trend.
Question
The member asked why the government was increasing public spending during a period when households and businesses were reducing expenditure, arguing that this was fueling inflation and forcing the Reserve Bank of Australia to maintain higher interest rates.
Includes 2 supplementary questions.
Answer from Katy Gallagher
The minister stated that the economy was experiencing its strongest broad-based growth in three years. She argued that the opposition was criticizing public investment in defence and health infrastructure, which contributed to the public demand figures, despite previously supporting such spending. She noted that private sector demand had recovered and was picking up in 2025. The minister emphasized that the government was managing the budget responsibly, paying down debt, and reducing interest payments, with debt levels $176 billion lower than previous forecasts.
Summary in reported speech - not a transcript. AI-generated, so check the source.
Read on OpenAustralia · Official Hansard (APH) · 1 point of order raised