Treasurer Scott Morrison said today that the deficit for the current fiscal year that ends on June 30 is expected reach 39.9 billion Australian dollars ($30.7 billion).
That is AU$4.8 billion worse than was forecast a year ago as the Australian economy has been buffeted by China's slowing demand for iron ore and coal.
In its latest economic blueprint, the government plans to reduce Australia's deficit to AU$37.1 billion next year and to AU$15.4 billion by 2018-19.