By Online parliamentary correspondent Emma Rodgers
Access Economics warns of impending recession Opposition Leader Malcolm Turnbull says Australians should be very concerned about today's dire economic forecast released by Access Economics.
But Mr Turnbull says putting the Budget into deficit to shore up the economy should only be used by the Government as a "last resort" and any deficit must be as low as possible.
Access Economics' business outlook predicts the country will be hit by a recession this year and has also described the Budget as "buggered", with a deficit likely.
It also says it expects unemployment to rise to 7 per cent by next year.
Mr Turnbull has told ABC Local Radio while there are times when a deficit cannot be avoided, the Government must justify further spending.
"A deficit must be a last resort, not an easy way out," he said.
"Mr Rudd wants to get a leave pass to run a huge deficit so there can be no constraints on spending.
"We will hold him to account - not just for the level of deficit, not just for the amount of spending - but for its quality and effectiveness."
The report warns the global economy is slowing at a "scary speed", with China's drop in growth in particular significantly affecting Australia's economy because of a loss of trade exports.
Federal Treasurer Wayne Swan is refusing to speculate on whether Australia is headed for recession but says the Government is doing everything it can to promote growth and jobs retention.
"The Australian Government has on the table a range of options which we can put in place should conditions require that," he said.'
"We have made very clear that we will take whatever action is required to strengthen growth in this country to support jobs and support businesses."
Mr Turnbull has reiterated his call for the Government to bring forward tax cuts scheduled for July this year.
"It's up to the Government to ensure its policies spend Australian taxpayers' dollars wisely and what we haven't seen of course is any tough decisions taken yet, and any new [economic] stimuluses should be in the form of tax cuts that create jobs," he said.
The Government is expected to release a further economic stimulus package in the first half of this year but has not confirmed whether it will bring tax cuts forward.
