Treasurer Scott Morrison says the changes in his budget and economic forecasts are only small because he was honest about the outlook in his mid-year review.
The budget deficit forecast for the 2015/16 has deteriorated by $3.4 billion to $39.9 billion since December, while the prediction for economic growth for 2016/17 was downgraded to 2.5 per cent from 2.75 per cent.
"In this budget, (this is) the smallest variation we have had since a previous statement in many, many years," Mr Morrison told ABC radio on Wednesday.
"I think that goes to the fact that last December, I said I was looking to call it as clearly as I could and we revised down the growth forecasts."
Commonwealth Bank of Australia chief economist Michael Blythe said the forecasts were pretty much in line with consensus among Australian economists and why there was little market reaction to the budget when it was released on Tuesday night.
"They look appropriately conservative," Mr Blythe said.
The budget warns that an uncertain global environment continues to pose risks to the Australian economy, which Mr Morrison said was consistent with the views of the International Monetary Fund and World Bank.
The treasurer said the Chinese economy was transitioning, and while it was slowing down it was still growing more than six per cent.
"We are in there with the best trade deal with China that anyone has," he said.
The IMF warned on Tuesday that a further potential drop in commodity prices still poses a threat to the economic outlook, particularly to commodity exporters like Australia.
However, Treasury did upgrade the volatile iron ore price in its forecasts based on its recent trading average - lifting it to $US55 per tonne from a predicted $US39 in December.
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