Treasurer Joe Hockey has delivered a poor outlook for the budget, with the deficit ballooning.
just issued a statement saying that they will be vigorously defending any of these accusations.
We've been given a pre-Christmas economic wake-up call.
that no-one wants to hear - we need to better live within our means.
Live to Mia Greves in Canberra.
Mia, the Treasurer says only going to get worse before it gets better?
Sal, Joe Hockey says Australia could be facing deficits for the next decade unless there's some drastic action.
As for returning the budget to surplus don't expect that any time soon either.
Let's take a look at the numbers from the mid-year economic review.
The deficit has gone up $17 billion to $47 billion but they're expecting an improvement next year to 33.
9, growth of the economy has been revised down to 2.
5% for next year.
Unemployment is on track to rise - up from 6% to 6.
25% for this year and the next.
The inflation has been revised up this year.
We will not leave budget issues for another day, so this document.
This document gives us an accurate picture of what we have now and what lies ahead.
Joe Hockey is softening up the Australian people.
He's preparing the ground for deep and brutal cuts come budget time.
Mr Hockey says this mess is not his fault either.
It's the fault of previous Labor governments and left unchecked over the next decade would have blown to nearly $700 billion in 2022.
Senior Economist Chris Richardson from Access Economics told 'Sunrise' this morning that blame goes back as far John Howard's government.
Both Coalition and Labor spent up big thanks to the mining boom and China's growth and the days of industry subsidies, middle-class welfare and tax breaks for the rich have come to an end.
The last decade saw a boom in emerging economies that threw money at the tax man but the boom turned out to be temporary.
The good news is, it does mean interest rates will stay low