Australia has announced a giveaway budget aimed at easing cost of living pressures while investing in defence and infrastructure projects ahead of the May election.

Treasurer Josh Frydenberg detailed a range of measures including temporary fuel excise tax cuts, A$38 billion ($28 billion) in regional and rural investment, A$17.9 billion in road and rail projects – many of which are on the fringes – and a $9.9 billion investment to strengthen the country’s cybersecurity capabilities as part of “a new chapter in Australia’s economic story”.

Tuesday’s Budget comes after Prime Minister Scott Morrison’s coalition government trails Anthony Albanese’s opposition Labour party in opinion polls.

But Mr Frydenberg has denied he has unveiled a “spending marathon” budget that includes measures to lower the cost of living in the form of a petrol tax cut and a one-off $250 payment to six million low-income Australians ahead of the election.

He said the government had instead “banked the dividends of a strong economy”.

Australia’s economy was boosted by sharp increases in the prices of iron ore, coal, gold and nickel. Russia invades Ukraine. The budget includes forecasts for iron ore and coal prices to fall sharply by the end of September, but says tax revenue will rise by $29.5 billion if prices remain at current levels.

Ukrainian invasion also reinforces Morrison’s campaign to increase military spending amid rising regional tensions. The budget includes a push to create a cybersecurity center called “Redspice,” which will employ 1,900 data scientists and software engineers.

The government says Redspice will support other military initiatives such as Okus Nuclear submarine deals with the US and the UK, and a $38 billion investment to expand the size of the Australian Armed Forces.

“The lesson of history is that weakness begets aggression. It leaves the country vulnerable to coercion. This is a reality we have to face. The world is less stable. We have to invest more in defending our country,” Frydenberg Greg said.

The Treasury Department is trying to strike a balance between boosting public spending ahead of the election without triggering a further rise in inflation. Australia’s net debt is forecast to rise to A$865 billion by 2026, up from A$592 billion in 2021.

Frydenberg said the debt-to-GDP ratio is still far below that of other advanced economies, including Japan and the United States.

Australia’s deficit is forecast to hit A$78 billion, or 3.4 per cent of GDP, next financial year, and the Treasurer said the deficit would fall to 1.6 per cent within three years.

Other measures in the budget include more money to protect Great Barrier Reefmoney to restore koala habitat after 2020 bushfire And support small-scale renewable energy projects. Frydenberg said a low-emission future was crucial to building a strong economy, and his government made a rare reference to climate change.

“Australia is on track to achieve net zero emissions by 2050, and [is] Play your part in tackling the daunting global challenge of climate change,” he said. “Technology, not taxes, will get us there. “