The Federal Government has promised new funding for Brisbane’s Gateway North project as part of tomorrow’s Federal budget.

In what’s expected to be another tough budget from Wayne Swan, foreign aid spending will be deferred for another year, while Newstart payouts are set to increase.

Molly Glassey reports.

TRANSCRIPT

Cuts seem to be the order of the day ahead of tomorrow’s Federal budget.

A budget hit to foreign aid has deferred spending for another year delivering a saving of $3 billion dollars.

David Bradbury, Assistant Treasurer: “When you’re facing the sorts of revenue writedowns that we’re faced, you have to make decisions across the breadth of the budget, and they’re not always easy decisions.”

This is the second year in a row that promised funding to foreign aid has been put on hold.

The government announced a cap on asylum seeker spending, but aid groups are still disappointed with the move.

Mark Purcell, Council for International Development: “Hundreds of millions of dollars spent in Australia is not going to help the poor of the world.”

However, there’s at least one new spending measure – an extra $300 million dollars for the unemployed and sole parents.

In the first income threshold increase in a decade, a boost of $38 dollars a week will be on offer for those on Newstart benefits.

Rachel Siewert, Greens Senator: “The government is simply trying to cover up the fact that they are not helping those struggling.”

The government’s pinning its electoral hopes on a big boost to infrastructure funding, Anthony Albanese waving the chequebook at marginal seats in Brisbane, Sydney and Melbourne.

NAME: Anthony Albanese, Transport Minister: “Infrastructure investment leads to higher economic growth when targeted towards the most productive areas.”

Mr Albanese’s allocating $718 million dollars for Brisbane’s Gateway North project, with $525 million dollars for Melbourne’s M80 and $1.8 billion dollars for Sydney’s motorways.

The opposition has mounted pressure on the ALP to fix current budget holes and keep their promises.

Joe Hockey, Shadow Treasurer: “Tomorrow night we expect the treasurer to be honest. We demand that he be honest with the Australian people.”

Molly Glassey, QUT News.