30 Jul 2008

Larger deficits tipped by Government

8:01 am on 30 July 2008

Finance Minister Michael Cullen says the Government will post larger deficits than forecast in the Budget because of a lower tax take.

In May's Budget, The Treasury forecast cash deficits of around $3.5 billion a year over the next four years, due to a slowing economy and income tax cuts.

Dr Cullen now says these deficits are expected to rise when the Government updates its economic and fiscal estimates before the election later this year.