Chalmers warns budget may face severe economic scenario due to Middle East conflict.

Treasurer Jim Chalmers warns the May 12 federal budget will incorporate a severe economic scenario due to the Middle East conflict, predicting higher inflation, slower growth, and rising unemployment. Citing surging oil prices and global instability, Chalmers says the budget will reflect heightened uncertainty, potentially altering the planned savings package. The government remains focused on tax and housing reforms despite these economic headwinds.