Dozens of federal government departments failed to rein in staff costs last financial year, and there were more than 40 reporting blowouts totalling over $2 billion – or $5.6 million a day – cushioned by only marginal cuts to external contractors and consultants.
Treasurer Jim Chalmers and Finance Minister Katy Gallagher are under growing pressure to cut spending in December’s mid-year budget update to assist the Reserve Bank’s inflation fight. Money markets and economists have priced in an 80 per cent chance that the RBA will lift the official cash rate on Melbourne Cup Day from 4.6 per cent to an 18-year high of 4.85 per cent.
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