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AAP
AAP
Business
Jacob Shteyman

Belt tightening in order as federal payments balloon

Spending must be cut in some areas to cover blowouts in others, Treasurer Jim Chalmers says. (Mick Tsikas/AAP PHOTOS)

An expected improvement to the federal bottom line is likely to be eaten up by unavoidable payment blow-outs, as the treasurer seeks to make more room in the budget.

In his mid-year budget next week, Jim Chalmers will reveal an unforeseen increase of $6.3 billion in natural disaster relief, an extra $3 billion in the age pension, $2.1 billion in defence force superannuation benefits and $1.3 billion in veteran entitlements.

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