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AAP

Business

Colin Brinsden, AAP Economics and Business Correspondent

Budget handout to fuel inflation: Deloitte

Chris Richardson Australia Deloitte Access Economics

Chris Richardson: the world being a more dangerous place will increase Australia's defence spending. (AAP)

A respected economist expects Treasurer Josh Frydenberg will hand down a much improved budget bottom line after Australia's strong economic recovery from COVID-19 and a commodity boom caused by war in Ukraine.

But Chris Richardson is against handouts to ease cost of living pressures, saying they will only fuel inflation and bring forward an interest rate hike by the Reserve Bank of Australia.

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