An expected improvement to the federal bottom line is likely to be eaten up by unavoidable payment blow-outs, as the treasurer seeks to make more room in the budget.
In his mid-year budget next week, Jim Chalmers will reveal an unforeseen increase of $6.3 billion in natural disaster relief, an extra $3 billion in the age pension, $2.1 billion in defence force superannuation benefits and $1.3 billion in veteran entitlements.
