Moody's warns Morrison on budget

A global ratings agency has warned Treasurer Scott Morrison that spending cuts alone will not make a meaningful impact in balancing the budget, putting Australia's triple-A rating at risk.

Moody's Investors Service notes the treasurer has excluded revenue-raising measures, and given the government's previous difficulties in reducing welfare benefits, actual spending cuts may be modest in the May 3 budget.

"Without such measures, limited spending cuts are unlikely to meaningfully advance the government's aim of balanced finances by the fiscal year ending June 2021 and government debt will likely continue to climb, a credit negative for Australia," Moody's says in a statement.