Labor accused of playing ‘footsies’ with Australia’s major challenges if it pursues risk-averse budget

A more ambitious budget would be more politically challenging, said the Grattan Institute’s Danielle Wood, but would do more to address growing inequality. Photograph: Lukas Coch/AAP

The Albanese government risks playing “footsies with the big social and fiscal challenges” if it pushes ahead with a “cautious” budget plan over a bolder route which would lift people out of poverty and increase productivity, a leading economist believes.

The Grattan Institute chief executive, Danielle Wood, in an address to the National Press Club said all indications pointed to the government taking the less ambitious route in addressing issues within the budget and wider economy, adopting only the lower-cost proposals put forward to ease cost-of-living pressures and poverty.