The Albanese government says it will maintain its focus on managing inflation, announcing $9.8 billion in savings and reprioritisations in its mid-year financial outlook.
But spending will add up to $5.2 billion, "some of which is unavoidable", Finance Minister Katy Gallagher said.
This includes a $22 million response to the findings of the robodebt royal commission, and $1.5 billion to end the pandemic event visa.
The visa category, which will close from February 2024, allows people to stay temporarily in Australia as long as they are working or have an offer to work.
The continued response to the COVID-19 pandemic will cost a further $392 million - which includes support for aged care - and the government will spend a further $254 million on biosecurity risks such as red imported fire ants.
The remaining figures will be released on Wednesday, when Treasurer Jim Chalmers and Senator Gallagher unveil the mid-year economic and fiscal outlook (MYEFO).
The Finance Minister said the outlook would show the government is "focused on putting the budget on a sustainable footing and continuing its responsible economic management".
"We are continuing to show restraint and to find savings and reprioritisations to account for new spending, some of which is unavoidable," Senator Gallagher said in a statement.
"We know households are doing it tough at the moment and our responsible approach will ensure we are not putting upwards pressure on inflation."
The update is also expected to show a significant increase in the cost of borrowing money, by $80 billion up to 2033-34.