Australia Increases Borrowing for Cost-of-Living Relief

The Australian government is set to increase its borrowing for the 2024/25 financial year, with plans to issue approximately A$100 billion in Treasury bonds. This move accompanies cost-of-living relief measures announced in the federal budget, ahead of an upcoming national election.

The Australian government is ramping up its borrowing strategy for the upcoming financial year, surpassing previous projections. The increased borrowing aligns with newly announced cost-of-living relief measures in the federal budget, set to benefit citizens as the nation approaches a crucial election period.

On Wednesday, the Australian Office of Financial Management disclosed plans to sell approximately A$100 billion ($63 billion) worth of Treasury bonds from the current financial year to June 2025. This comes as part of the government's effort to sustain funding for budget initiatives that alleviate financial pressure on households.

Additionally, around A$3 billion will be allocated to the issuance of Treasury Indexed Bonds. These fiscal strategies were rolled out in response to the heightened need for economic interventions, particularly as Australians prepare to vote by May.

(With inputs from agencies.)