SYDNEY (Reuters) - Australian government spending on operational items rose a strong 2.7% in the June quarter from the previous quarter to an inflation-adjusted A$91.33 billion ($61.68 billion), the Australian Bureau of Statistics reported on Tuesday.
Investment in assets by the government and public enterprises fell 2.3% to A$22.51 billion.
The ABS said general government spending likely added 0.5 percentage points to gross domestic product (GDP) growth in the June quarter, while investment subtracted 0.1 percentage points.
Public spending accounts for around 24% of GDP, data for which are due on Wednesday. Economic growth was forecast to rise 0.5% last quarter, according to a median of economists polled by Reuters, dragging the annual pace down to 1.4%.
Reporting by Wayne Cole; Editing by Sam Holmes