Treasurer Jim Chalmers was forced to defend the Government’s economic approach under mounting pressure on inflation and rate rises, insisting the upcoming Budget will be “very, very responsible” as households continue to feel the squeeze.

The comments follow a warning from Reserve Bank Governor Michelle Bullock, who flagged that further stimulus could add to inflationary pressures, putting the Government’s Budget strategy under closer scrutiny.

Speaking on Sunrise, Dr Chalmers pushed back on suggestions that the Government is preparing a fresh wave of stimulus, saying: “This will be a really responsible Budget, which takes the inflation challenge seriously, because we know that people are under pressure.”

The Treasurer stressed that the Budget would focus on restraint, rejecting concerns it could add to inflationary pressures.

“We intend to responsibly, carefully wind back spending in the Budget,” he said, adding that the Government could still “play a helpful role in the fight against inflation.”

Dr Chalmers also pointed to global factors, including escalating conflicts in the Middle East, as a key driver of rising costs. He warned that inflationary pressures were being “made worse by major war in the Middle East, which is pushing up petrol prices at the bowser.”

The comments come as attention turns to expected fuel security measures, with Prime Minister Anthony Albanese and Chris Bowen set to outline the Government’s approach following National Cabinet discussions.

When pressed on reports of potential cash payments for workers, Dr Chalmers refused to be drawn on speculation, saying: “I’m not going to add to that speculation. People don’t have long to wait… It’s (the Budget) only six days from now.”

Instead, he pointed to existing tax relief already locked in, including upcoming tax cuts and fuel measures, describing the Government as “a tax-cutting government” focused on easing cost-of-living pressures.

Although promising help to cash-strapped Aussies, Dr Chalmers insisted his next Budget would show discipline over the forward estimates, declaring, “We will be saving more than we spend over the Budget’s horizon”.

Despite criticism in the lead-up to budget night, the Treasurer dismissed political attacks, saying his focus remained on economic management rather than headlines.

“My job is to focus on managing the economy as responsibly as I can,” he said, adding he tries not to be distracted by commentary designed “to make people angry and sell more papers.”