Welfare payments to add $33b to budget

Treasurer Jim Chalmers says the budget has to help those on welfare payments keep up with inflation. (Mick Tsikas/AAP PHOTOS) (AAP)

An extra $33 billion will go towards the pension and other welfare payments in the federal budget, with inflation largely responsible for growing welfare costs.

Treasurer Jim Chalmers said the government needed to find billions in extra funding because welfare payments are pegged to inflation.