PM cagey on pre-election 'war chest'

Mr Howard would not comment on reports that $8.6 billion remained at the government's disposal to spend before the next election.

"I'm not going to confirm and deny figures like that," he said.

"We brought down a very responsible budget, and we brought down a budget that will not exert upwards pressure on interest rates."

"And as to what happens between now and the election, well, you'll just have to wait and see. But we certainly don't intend to do anything that's going to exert upwards pressure on interest rates."

Mr Howard said the government's responsible economic management meant it was in a position to "do things which would have been denied to this country if (Opposition Leader Kevin) Rudd and his colleagues had had their way over the last 10 years".

Asked how much money was in the government's kitty to spend before the election, Mr Howard said: "If you're saying that it's allotted, that we are all sort of ready to have another big spending boom, that's wrong".