Budget 2026: Is Canberra’s Spending Fuelling the Issue It’s Trying to Fix?

The federal budget is just weeks away on 12 May, pressure is mounting on Jim Chalmers and the Albanese government to navigate a difficult economic landscape. Cost-of-living concerns remain front and centre, inflation is proving stubborn, and the International Monetary Fund has warned that government spending itself may be adding to the problem.

With productivity stalling, capital gains tax back on the table, and fiscal and monetary policy seemingly at odds, the decisions made on budget night could shape the economy for years to come.

To unpack what’s at stake, University of Southern Queensland economist Professor Fabrizio Carmignani spoke with The Wire’s Patrick Dunstan.