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Treasurer Josh Frydenberg will use his post-pandemic budget to deliberately run the economy as fast as possible in a bid to drive the nation’s jobless rate below 5 per cent, upending the federal government’s fiscal policy.
In a major shift in rhetoric and budget policy, Mr Frydenberg will on Thursday use a speech to bring the government’s spending plans in line with the Reserve Bank’s own aggressive monetary policy stance while abandoning any rush to post-pandemic austerity.
Last year Josh Frydenberg said budget repair would not start until unemployment was comfortably below 6 per cent. That plan will be dumped in this budget.