Foreign aid and public sector jobs have again become a casualty of the nation's worsening budget deficit.
Federal Treasurer Joe Hockey has revealed the deficit forecast for the federal budget has blown out to $40.4 billion this year.
That compares with the $29.8 billion deficit predicted in May.
Mr Hockey is also warning that unemployment is expected to reach a new 12-year high of 6.5 per cent in over the next 12 months.
Amanda Cavill has the details.
(Click on the audio tab above to hear the full report)
Share
