REPORT: The Federal Budget Will Halve Projected Deficits Over Four Years To $60 Billion

SYDNEY, AUSTRALIA – FEBRUARY 22: Australian Treasurer Joe Hockey sits with delegates awaiting the G20 Finance Ministers and Central Bank Governors official group photo to be taken on February 22, 2014 in Sydney, Australia. This event is the first major G20 meeting under Australia’s presidency in 2014. (Photo by Lisa Maree Williams/Getty Images)

ABC News is reporting tonight’s federal budget will more than halve the total deficits projected over the next four years, from $123 billion to $60 billion.

The $123 billion figure was the combined forecast deficits in the mid-year economic and fiscal outlook, unveiled last year, which showed a dramatic decline in the government bottom line.

ABC says the effect of the measures in tonight’s budget will lead to this figure being drastically and rapidly reduced over four years.

Some economists have noted that a recent pick-up in the domestic economy may have helped to improve the bottom line forecasts for the government as it has prepared the budget. One major bank, however, was still forecasting deficits of $110 billion through to 2017. So if it’s accurate it means a drastic improvement in what the market has been expecting.

We’ll have full coverage, live, from 7.30pm AEST tonight.

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