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Abbott seeks 'sensible efficiencies'

Prime Minister Tony Abbott says his government won't be seeking further massive budget savings but will be looking for "sensible efficiencies".

hockey

Joe Hockey and Tony Abbott face a battle AAP.

It would have sent a shiver down the spines of the nation's remaining public servants.

Prime Minister Tony Abbott says the upcoming mid-year budget review won't include massive additional savings because of a downturn in Australia's terms of trade.

But "sensible efficiencies" will always be sought.

Mr Abbott was responding to new forecasts the budget will blow out by almost $36 billion over the next four years.

Deloitte Access Economics attributes its projection to tax revenue writedowns, due to falling commodity prices, as well as increased spending on national security and military operations.

"The balanced budget predicted for 2017/18 is well and truly toast," Deloitte economist Chris Richardson warned.

That's aside from the $28 billion of measures stuck in the Senate.

Finance Minister Mathias Cormann concedes the significant reduction in commodity prices has had an impact on the government's capacity to keep to its budget surplus timetable.

Treasurer Joe Hockey had predicted the budget returning to near balance of a $2.8 billion deficit in 2017/18.

Mr Richardson expects the deficit will now be more like $12.4 billion in that financial year.

Mr Abbott acknowledged there is pressure on the budget that wasn't there at the start of the year.

"The fundamental difference, though, between this year and last year is that this year you've got a government which is serious about budget repair," he told reporters in Canberra.

Mr Hockey will hand down his mid-year budget review in the next couple of weeks.

Opposition Leader Bill Shorten said this will be a test of both Mr Hockey and Mr Abbott.

"In the case of Joe Hockey, I suspect it's his last chance," Mr Shorten said.

Shadow treasurer Chris Bowen added that restoring the budget has been Mr Abbott's alibi for breaking election promises.

"His alibi doesn't stack up," he said.

However, there was some good news for the treasurer as he pens his review.

New figures suggest Wednesday's national accounts will show a solid economic growth result for the September quarter with annual GDP at three per cent or above.

Company profits and business inventories - stock on shelves and in warehouses - were both stronger than economists had expected for the quarter.

Mr Hockey has been hanging out for the national accounts to get the most up to date figures to base his new forecasts on.


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