Cost of Government Borrowing Outpacing Spending on NDIS

This economic development signals challenges for budget management and households, emphasising the impact of increasing interest rates.

Australian Treasurer Jim Chalmers hands down the 2023 Budget in Canberra, Australia, on May 9, 2023. Martin Ollman/Getty Images

Rising interest rates are stressing the federal budget, with borrowing costs surpassing the National Disability Insurance Scheme (NDIS) as the fastest-growing area of Commonwealth spending.

Borrowing will add an extra $80 billion (US$52 billion) to the government’s expenses over 11 years until 2033-34, even though the expected gross Commonwealth debt is lower than initially forecast in the May budget.