Treasurer Jim Chalmers says the budget is in “much better nick” than what Labor inherited from the previous government.

Pre-budget discussions have begun, in which the Treasurer and Financial Minister discussed the budget.

“There will be more spending restraint in this budget and there will be more savings in this budget as well,” Mr Chalmers added.

“This is not the time for scorched earth austerity.

“This is not the time to slash and burn in the budget when people are doing it tough and when growth in our economy is weaker.”