Australia's federal budget deficit for 2020/21 is forecast to be $184.5 billion due to a downturn in revenue and the cost of dealing with the coronavirus pandemic.
Treasurer Josh Frydenberg has revealed the budget was in deficit $85.8 billion in 2019/20 with the figure to blow out further in 2020/21 as a result of record spending.
"These harsh numbers reflect the harsh reality we face," he told reporters in Canberra on Thursday.
"The impact of the coronavirus has led to a significant decline in tax receipts and a large increase in government payments."
Mr Frydenberg said the economic outlook remained highly uncertain, highlighted by the Victorian outbreak.
"(It's) a painful reminder of how a setback in combating the virus can impact the speed and trajectory of our national economic recovery," he said.