SYDNEY (Reuters) – Australia’s improved fiscal outcomes from a strong economy and high commodity prices underpin its AAA sovereign rating, S&P Global said on Tuesday, after the new labour government unveiled its first budget.

“We believe the budget won’t greatly add to inflationary pressures. The budget reprioritizes previously allocated funding to the new government’s policy agenda and limits new spending in the immediate future,” Anthony Walker, a Director at S&P Global Ratings, said.

(Reporting by Stella Qiu; Editing by Andrew Heavens)