In the six months before the last federal election, the government awarded more than $630m worth of grants from programs like the better regions fund, which faced significant criticism for its distribution of cash to Coalition electorates.
Ahead of what is shaping up to be a big-spending budget, with initiatives in mental health, aged care, and childcare, the Reserve Bank of Australia revised its economic growth projections upwards on Tuesday. The central bank is now predicting the Australian economy will grow by 4.75% in 2021 and 3.5% in 2022.
The reserve bank cited a pickup in business investment and household spending âsupported by the strengthening in balance sheets over the past yearâ as reasons for the more optimistic growth forecast. The bank predicts Australiaâs unemployment rate will hit 5% by the end of 2021 and 4.5% by the end of 2022.