Treasurer Wayne Swan has revised official budget and economic forecasts for the year to June 30, 2013, and the following three years, and announced $16.4 billion of spending cuts to keep the budget on track for a small surplus.

In the May budget, Mr Swan had committed the federal government to deliver a small surplus budget in the 2012-13 fiscal year, and for the following three years.

FORECASTS

SURPLUS/DEFICIT New (Pct of GDP) - Previous (Pct of GDP)

2012/13 +1.1 (0.1) +1.5 (+0.1)

2013/14 +2.2 (0.1) +2.0 (+0.1)

2014/15 +3.3 (0.2) +5.3 (+0.3)

2015/16 +6.4 (0.4) +7.5 (+0.4)

GDP GROWTH New - Previous forecast

2012/13 3.0 3.25 pct

2013/14 3.0 3.0 pct

2014/15 3.0 3.0 pct

2015/16 3.0 3.0 pct

UNEMPLOYMENT New - Previous forecast

2012/13 5.5 5.5 pct

2013/14 5.5 5.5 pct

2014/15 5.0 5.0 pct

2015/16 5.0 5.0 pct

CPI INFLATION New - Previous forecast

2012/13 3.0 3.25

2013/14 2.25 2.5

2014/15 2.5 2.5

2015/16 2.5 2.5

RESOURCE RENT TAXES - Net revenue for resource rent taxes, which includes the Petroleum Resource Rent Tax and the controversial Minerals Resource Rent Tax (MRRT) on iron ore and coal mine profits, was revised down by $1.8 billion in 2012-13, and $1.8 billion in 2013-14, with most of the downward revision due to the MRRT.

Reuters