Isaac Herzog in Canberra today; Angus Taylor set to quit Coalition frontbech as Sussan Ley leadership challenge imminent; Nancy Guthrie disappearance CCTV released by FBI

The Treasury boss announced that the government’s spending plans in recent months have remained unchanged, saying inflation pressures have increased due to private investment, household spending and a better global outlook.

Questioned by Liberal senator James Paterson at a parliamentary committee, Jenny Wilkinson rejected suggestions that government spending was behind the Reserve Bank’s decision to raise interest rates last week, contributing to a rise in inflation.

The government, which had a deficit of 10 billion dollars in the last fiscal year, foresees a deficit of 36.8 billion dollars this year.

The coalition accused the government of contributing to the interest rate hike through spending.

Paterson said that the budget is starting to become more deficit. “That’s a clear stimulus to the macro economy, right?” he said.

But Wilkinson said the budget turned out slightly better than expected during the May election.

What was surprising was the increase in private investment, especially in data centres.

Household spending was stronger, while the global economic outlook was better than expected.

He said “conditions have changed” since the middle of last year, but that change was driven by the private sector rather than federal government spending.

“What’s critical to understand is what the underlying factors or drivers are that are changing,” he said.

“And the fiscal policy stance… that hasn’t changed.

“If we look back [the election budget update]The change was bigger than it turned out to be.”