Budget summary: Karen Middleton reports

Federal Treasurer Wayne Swan has announced a deficit of $18 billion, compared with a $1.5 billion dollar surplus forecast in last year's budget.

the budget makes savings of $43 billion over four years, one of the main casualties being the baby bonus.

Scrapping that will save $1 billion.

Labor will make extra funding available for newborns under its Family Tax Benefit.

Tightening tax loopholes for multinational corporations will net the government $4 billion.