Australia faces budget deficits as far as eye can see: Deloitte

Sydney

AUSTRALIA faces budget deficits "as far as the eye can see" as plunging export commodity prices and weak wage growth cut company and income tax revenue and savings measures are blocked, Deloitte Access Economics said.

The underlying cash deficit will be A$34.7 billion (S$38.5 billion) in the year through June 30, A$5 billion wider than forecast in the May budget, Chris Richardson of the Canberra-based research company forecast in a report. In the following year, it will be A$10.1 billion wider than estimated, at A$27.2 billion, said Mr Richardson, a former Treasury economist.