News National Budget deficit tipped to blow out to $50 billion

Budget deficit tipped to blow out to $50 billion

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The federal deficit is tipped to blow out to $50 billion with slower growth and a big drop in jobs on large construction projects.

The mid-year fiscal and economic outlook (MYEFO) to be released on Tuesday will show a deterioration in the budget position, Fairfax newspapers reported on Monday.

In the pre-election economic and fiscal outlook (PEFO) in August, Treasury forecast a deficit of $33.1 billion in 2013-14 but that’s now likely to blow out to $50 billion.

Presenting the report card on his first 100 days in office on Sunday, Prime Minister Tony Abbott said the MYEFO would show the real extent of the problems inherited from Labor.

“What I think we will see in MYEFO is the full extent of Labor’s profligacy but the job of the MYEFO statement is if you like to rule a line under Labor’s era of debt and deficit so that henceforth from this time on the government can begin the fiscal repair job that our country needs,” he said.

Shadow Treasurer Chris Bowen said this would be all the government’s responsibility and they had it made it much much worse.

“(Treasurer Joe) Mr Hockey denied in parliament last week that the impact of his decisions would top $9 billion this financial year and we will see if he was telling the truth when he said that when the mYEFO is released,” he said.

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