More deficits expected in midyear budget update

TREASURER Joe Hockey is expected to announce further budget deficits today when he hands down his midyear update.

Mr Hockey will deliver his midyear economic update today, amid reports of a forecast of $379.5 billion in receipts following a figure of $385.7 billion in May.

Fairfax Media says the outlook will point to tens of billions of dollars in lost revenue over the next four years as a result of falling commodity prices.


News Corp Australia says deficits over the period will almost double to 100 billion, signalling little hope of economic improvement without unpopular reforms to taxes and spending.

Mr Hockey warned yesterday of job losses and an end to Australia’s prosperity ahead of the update, with plummeting iron ore prices the chief cause.