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Finance Minister Katy Gallagher says the short-term improvement in the budget to be handed down on Tuesday is real and substantial.

“But the longer-term issues facing the budget, the structural issues remain,” Ms Gallagher told Sky News Business Editor Ross Greenwood.

“There’s a welcome improvement, but that still doesn’t take away from the fact that there’s a lot of people that are doing it tough, and we need to respond to that, and we need to repair the budget.”