Next month’s update of the federal budget will forecast a bigger deficit for 2024-25 than was predicted in the May budget, according to the Deloitte Access Economics’ Budget Monitor, released on Tuesday.
Deloitte forecasts a deficit for the current financial year of $33.5 billion, $5.2 billion worse than the $28.3 billion deficit that the budget forecast.
Multiple factors are contributing to the worsening figure, including the flat economy, less company tax revenue than earlier expected, the overseas situation particularly the problems in China’s economy, and continued spending pressures.
