Treasurer Jim Chalmers of Australia has cautioned about the significant impact of the new U.S. administration's policies on the global economy before unveiling his fourth national budget on Tuesday. The budget will introduce new support for Australians' cost of living, including a 6-month extension of electricity bill subsidies costing A$1.8 billion. Chalmers foresees a slight revenue increase in the forthcoming fiscal plan but acknowledges the global economic uncertainty caused by the return of U.S. President Donald Trump.

Amidst geopolitical conflicts and uncertainty worldwide, Chalmers emphasized the budget's role in enhancing resilience in the face of external shocks. With upcoming elections in Australia and Prime Minister Anthony Albanese gearing up for the campaign, addressing concerns over the surge in living costs, housing challenges, and Reserve Bank measures to control inflation remains crucial.

Despite confronting challenges, Chalmers expressed optimism about the economy's progress, citing lower inflation, rising real wages, reduced debt, and increased growth. While Australia has embraced industry and green energy initiatives akin to the former Biden administration in the U.S., Chalmers indicated no new policy announcements in these areas in the upcoming budget.