With less than a week until Treasurer Jim Chalmers delivers his third budget, David Speers sat down with the former boss of Treasury, Ken Henry, to discuss the state of the Australian economy and whether the government should use the budget to try and crimp stubborn inflation.

The longer-term challenge for the Treasurer lies in re-shaping the economy as it transitions to a net-zero future – and re-shaping the Budget to be more sustainable as spending pressures rise. The government's Future Made in Australia industrial policy will be a key feature of those plans, but Dr Henry remains unconvinced about the merits of taxpayers subsidising Australian manufacturers.