Labor's spending exceeds savings from consultant cuts

Australia's Labor government has announced significant savings by cutting costs on private consultants, totaling $720 million. This is part of a larger $2.1 billion reduction included in the federal budget. Finance Minister Katy Gallagher stated that bringing outsourced work back to government departments has led to overall savings of $4.7 billion during Labor's first term. She emphasized that these savings allow them to invest in essential areas like healthcare and housing. Despite the savings, the budget will feature new spending that surpasses the cuts. This includes $8.5 billion for bulk billing incentives and $1.8 billion to extend energy bill subsidies. The government plans to keep these energy subsidies in place until the end of 2025, focusing on supporting citizens amid rising living costs. The Coalition, the main opposition party, has matched many of Labor's spending proposals and also promises new spending initiatives. Shadow Treasurer Angus Taylor claimed that the Coalition would manage to spend less overall while also restoring a budget rule that limits spending growth to the pace of economic growth. As spending on programs like the National Disability Insurance Scheme (NDIS) and health continues to rise, Labor accuses the Coalition of potentially planning cuts to frontline services. The Coalition denies these claims, with Taylor insisting they aim to keep overall government spending manageable. In terms of defense, Labor has ruled out further increases in spending for this budget cycle despite past promises. The Coalition is also unclear about how they would fund their plans for nuclear power plants. They estimate total costs could reach $331 billion over many years, but they suggest that much of this financial burden would be handled by the private sector. Both parties are preparing their strategies ahead of the upcoming election and the budget announcement on Tuesday.