Labor Government tensions flare as Budget proposals reportedly knocked back

Treasurer Jim Chalmers and Finance Minister Katy Gallagher aren’t denying frustrations inside Labor’s ministerial ranks after reports spending proposals are being rejected as the Federal Government eyes a second budget surplus.

Five ministers have reportedly had funding submissions knocked back by Prime Minister Anthony Albanese’s expenditure review committee ahead of the May budget, Nine papers reported on Thursday.

One of those ministers, Industry and Science Minister Ed Husic, reportedly complained directly to Mr Albanese that the nine-person budget razor gang was shutting out ministers from decision-making.

Mr Husic also reportedly complained about the influence of two senior public servants – Finance secretary Jenny Wilkinson and Treasury secretary Steven Kennedy – over Government spending.

Health Minister Mark Butler, Social Services Minister Amanda Rishworth, Aged Care Minister Anika Wells and Climate Change and Energy Minister Chris Bowen all had budget proposals turned down, according to the report.

Senator Gallagher did not deny the reports when questioned about them on Thursday morning.

She said it was her job to put the foot down to say “we can’t do everything” with the Federal Budget under growing pressure from rising costs in health, defence, aged care and debt repayments.

“It’s a fact that Labor Governments like to do things and it’s my job to say we can’t do everything,” Senator Gallagher told reporters in Canberra.

Dr Chalmers is on track to hand down a second consecutive surplus in May, after last year getting the budget back in black for the first time in 15 years.

Asked if he was “obsessed” with delivering a second surplus, Dr Chalmers said: “I’m obsessed with good economic management”.

The Treasurer rejected the suggestion that ministers were being shut out of the decision-making process, saying Mr Albanese ran a “very inclusive, very consultative operation”.

But he acknowledged that not all proposals were accepted.

“That doesn’t always make us popular,” Dr Chalmers told ABC’s RN Breakfast.

“We know that there are more good ideas than can be funded. That’s just the reality of a good government. But we do our best for people, we do our best for ministers, and we do our best for the country, and from time to time you get stories like this so be it.”

Along with Mr Albanese, Senator Gallagher and Dr Chalmers, the budget razor gang includes Defence Minister Richard Marles, Foreign Minister Penny Wong, Infrastructure Minister Catherine King, Communications Minister Michelle Rowland, Assistant Treasurer Stephen Jones and Mr Butler.

Shadow home affairs minister James Paterson said the reports were a sign of “very deep unhappiness” inside the Albanese Government.

“I mean, I think it’s important for the Prime Minister and the Treasurer to be upfront today and explain what’s happening here,” Senator Paterson said.