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Budget deficit could be $80 billion due to recession

Budget deficit could be $80 billion due to recession article image

World recession has forced the Australian government to go into deficit, which could be between $50-80 billion according to estimates. Prime Minister Kevin Rudd remarked: "Australians didn't cause this thing but we are certainly suffering from the consequences." The Budget was in surplus by $22 billion last May. Treasurer Wayne Swan confirmed that next week's Budget would be tight due to write-downs in the Government's income through tax: "They are very substantial, probably the largest in living memory." The write-downs are due to companies and individuals having lower incomes, which means they pay less tax. The Budget will also include an unemployment forecast of eight percent.

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