Australia's Budget: Navigating Deficits Amid Global Uncertainty

Australia's upcoming budget is projected to go into deficit after two years of surpluses, as the government introduces cost of living measures to boost re-election chances amidst global economic uncertainties.

Australia is poised to reveal a budget deficit this week, following two years of surpluses, as Prime Minister Anthony Albanese introduces household relief measures to bolster his re-election prospects amid looming global economic challenges.

Treasurer Jim Chalmers emphasized the budget's focus on cost of living resilience. Key initiatives include extended electricity rebates and a shared equity scheme for first-time homebuyers. The budget also advances A$1 billion in defense spending to enhance military capabilities.

Fiscal projections indicate a return to deficit, although smaller than the initially anticipated A$26.9 billion. With an eye on healthcare and defense expenditures, Australia navigates mixed economic fortunes as it nears elections, maintaining low unemployment but facing housing affordability woes.

(With inputs from agencies.)