Economics
Budget Blows Out as Australia’s Rudd Prepares for Vote: Economy
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Australia’s budget deficit will blow out to A$30.1 billion ($26.8 billion) this fiscal year, limiting the scope for Prime Minister Kevin Rudd and opposition leader Tony Abbott to embark on a spending spree in an election campaign that may be announced this weekend.
Treasurer Chris Bowen today projected a revenue shortfall of A$33.3 billion over the next four years from forecasts 2 1/2 months ago. The government cut its growth estimate this fiscal year to 2.5 percent from 2.75 percent seen May 14 and said unemployment will rise to a more than decade-high 6.25 percent.