Treasury does not believe government spending in last week's federal budget will inflame inflation or alter the outlook for interest rates.
The 2022/23 budget papers show the government made $39 billion worth of new spending decisions, which includes an $8.6 billion cost-of-living package.
Luke Yeaman, deputy secretary of Treasury's macroeconomic group, told a Senate estimates hearing that given the size of the overall economy, he did not expect this would have a material impact on inflation.
