Australia to outline budget and deficit forecast

14 May 2013

The Australian government is set to reveal its latest budget, which will address the nation's economy ahead of the general election later in the year.

Treasurer Wayne Swan is expected to announce Australia's second budget deficit in three years after outlining his spending plans.

Currently, the Australian economy is struggling after a weakened global demand in commodities that has slowed the country's growth and tax income.

While the mining sector has seen steady growth and has largely boosted Australia's economy overall, other sectors have struggled to gain traction.

The Reserve Bank of Australia recently cut its key rate of interest from three per cent to 2.75 per cent in an attempt to counter the slowing growth in its mining sector.

Analysts expect the deficit to be as much as AU$20 billion (US$20 billion) for the financial year 2013-14.

In a meeting with ministers ahead of the budget announcement, prime minister Julia Gillard said: "It's a difficult budget to put together, given the economic circumstances."

By Tony Aynsley

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