Federal government spending on public servant salaries surged another 7 per cent last year, putting further pressure on Treasurer Jim Chalmers and Finance Minister Katy Gallagher to rein in hiring to help repair the Commonwealth’s stretched finances.
Economists are urging Chalmers and Gallagher to cut spending in the upcoming mid-year budget update to help the Reserve Bank of Australia fight inflation; many argue the public service is an obvious place to start.
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