Budget set to stifle Australian inflation
Updated
Australia's treasurer, Wayne Swan, will reveal on Tuesday night how he has balanced his fight against inflation while delivering more for working families.
Mr Swan will hand down his first budget, saying he has made more than 600 cuts and expecting to be left with a surplus of around $A17 billion as an inflation buffer.
But $31 billion in tax cuts from July might break through the buffer and renew pressure on interest rates.
Australian Workers Union spokesman Paul Howes says inflation is a threat to working families, and he wants an option in the budget to pay the tax cuts into superannuation.
"Rather than see this money driven back into the economy through tax cuts, it will go into savings," he said.
