Budget Deficit Widens


Australia will have a budget deficit of $35 billion compared to a December estimate of $33.7 billion, according to a Bloomberg survey of economists
The survey also foreshadowed that Treasurer Scott Morrison tomorrow lift the net debt forecast to 18.5 per cent of gross domestic product, up from 18.3 per cent when he hands down his first Budget tomorrow.
The economists have net debt within a range of 17 percent and 19 percent of gross domestic product.
The Bloomberg survey follows a report by Deloitte Access Economics last week which forecast a Budget deficit $21 billion worse than forecast last year.
Deloitte has forecast that total tax collections undershooting Treasury expectations by $3.5 billion in 2017-18, and then by a further $4.1 billion in 2018-19.
The government has also been unable to pass budget savings measures through the Senate, where it lacks a majority, making any chance of it returning the budget to surplus even more remote.

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