An independent budget analysis warns the Federal Government is looking at a $47 billion blow-out in budget deficit estimates.
Deloitte Access Economics compared the deficit to a work of horror.
Rebecca McDonough reports.
The report predicts a budget deficit of 45.9 billion dollars that’s 5.5 billion worse than previously forecast.
Deloitte is blaming the drop in iron ore prices, slow wage growth and the retreat of the Chinese commodity boom.
But that’s not all.
Chris Richardson, Deloitte: “The Australian electorate isn’t willing to give up the lollipops they got handed over a decade.”
The report also identified pressures in Australia’s domestic political climate and the gridlock in the Senate as headaches for the budget.
Tony Abbott, Prime Minister: “The fact that the Labor Party is now blocking in the Senate savings which it actually proposed in Government.”
Mr Abbott reiterated next week’s budget would include a plan to return to surplus, but refused to specify a time frame.
Bill Shorten, Opposition leader: “It’s not last year’s budget, the Government got the economy wrong. They pursued an ideological agenda of unfairness and of course the Parliament couldn’t adopt an unfair budget.”
The Reserve Bank is meeting tomorrow it’s tipped to cut official interest rates to a record low of two per cent.
Rebecca McDonough, QUT News.