$40b black hole

Did someone say Labor are back in power? This certainly confirms it. Aren't they just the most unlucky political party around!!!! LOL

$40b hole in Budget revenue: Swan
By Online parliamentary correspondent Emma Rodgers

Treasurer Wayne Swan says the Government's forecast Budget surplus has been slashed from over $21 billion to around $5 billion.

Unemployment figures have also been revised up, with the jobless rate expected to rise 5 per cent by the middle of next year, while growth is expected to slow to 2 per cent.

Releasing the Government's Mid-Year Economic and Fiscal Outlook, Mr Swan said the global financial crisis had "smashed" a $40b hole in Budget revenue.

"There's no point in trying to sugarcoat these figures," he said.

"The Budget has felt the full force of the global financial crisis."

Mr Swan said although Australia was still well placed to deal with the crisis, "there could be more to come".

The forecast GDP for 2008-09 is now at 2 per cent, which is down 0.75 per cent from May.

Unemployment is set to rise to 5 per cent in June 2009 and is forecast to rise to 5.75 per cent in June 2010.

The Budget surplus, which was set at $21.7b in may has now been revised down to $5.4b for 2008-09, which is 0.4 per cent of GDP.