News: Australia government spending rises in Q1, adds to growth

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    SYDNEY, June 2 (Reuters) - Australian government spending on operational items rose 1.8% in the March quarter from the previous quarter to an inflation-adjusted A$96.13 billion ($65.30 billion), the Australian Bureau of Statistics reported on Tuesday.

    Investment in assets by the government and public enterprises fell 0.7% to A$24.42 billion, suggesting total spenidng added to economic growth in the quarter.

    Public spending accounts for around 24% of GDP, data for which are due on Wednesday. Economic output had been forecast to have fallen 0.3% last quarter, according to a median of economists polled by Reuters, pulling the annual pace down to 1.4%.

    ($1 = 1.4721 Australian dollars)

 
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