Stronger than expected budget position to fuel calls for cost of living relief, economists say

Majority of additional revenue disclosed in mid-year budget update likely to be banked to avoid further stoking inflation

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The Albanese government’s mid-year budget update will reveal a fiscal “sweet spot” fuelled by strong commodity prices, population growth and a resilient labour market, economists say.

But experts believe the government is likely to play down the positive budget position in order to curb calls for more cost of living relief that could stoke inflation and keep interest rates higher for longer.

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