Australia Flags $13.3 Billion Savings as Budget Strains Grow

Australia will book A$20 billion ($13.3 billion) in savings in Wednesday’s mid-year budget update as the government works to offset rising spending pressures, Treasurer Jim Chalmers said.

The update “won’t be a mini budget,” but will show the government is “all about delivery, responsibility and restraint,” Chalmers told reporters Sunday. The budget faces “about A$35 billion” in extra costs — roughly A$25 billion once Australia’s goods-and-services tax is removed — due to natural disasters, the age pension, veterans’ payments and military retirement expenses.