The total cost of public servant wages grew faster than it has in 15 years last financial year to $232 billion, fuelling economists’ warnings that government spending is helping to keep interest rates higher for longer.
Employee expenses are one of the fastest growing areas of government spending, rising 8 per cent over the 2023-24 financial year, according to figures released by the Australian Bureau of Statistics on Thursday.
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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com