The federal budget to be released tonight will set up an election clash on jobs and wages. 

The fuel excise is likely to be temporarily halved in a bid to reduce soaring petrol prices.

Meanwhile, pensioners and low income earners are expected to get a one-off payment to deal with the high cost of living.

4BC federal politics editor Michael Pachi told Neil Breen there’s no doubt it’s an election budget.

“You’ve got a lot of money that’s going out tonight and a lot of it is to deal with the immediate cost of living pressures people are under.

“There’s a bit more money in people’s pockets but the problem is a lot more of that money is going out a lot faster.”

Michael said Treasurer Josh Frydenberg described it as a “responsible” budget when he arrived at Parliament House this morning.

“I assuming there will be some sort of ‘big bang’ announcement that they’re going to use to campaign during an election,” Michael said.

“You’d assume that tonight they’re keeping something in their back pocket.”

Press PLAY below to hear Michael Pachi’s early analysis of the budget

Image: Getty