Finance minister Katy Gallagher says the government is “mindful” of its role in driving spending as budget pressures climb above 27% of GDP.
Finance minister Katy Gallagher has defended Labor’s spending record amid growing scrutiny of government outlays.
Speaking on RN Breakfast, Gallagher said the budget faced heavy pressures from defence, health, aged care and the National Disability Insurance Scheme.
She said the government was conscious of the impact of public spending on the broader economy and had taken a responsible approach.
Gallagher said Labor had already identified $114bn in savings since coming to office, including a directive for the public service to cut its lowest priority spending by 5 per cent.
She pointed to the NDIS as an example of cost control, saying its growth rate had been reduced from 22% when Labor took office to about 8%.
Gallagher said managing rapidly growing programs remained a key task, with similar scrutiny being applied to aged care and other major spending areas.
