Shadow treasurer Joe Hockey has trashed the federal government's economic update statement and says Labor has lost control of the economy.
The update released by Treasurer Chris Bowen and Finance Minister Penny Wong on Friday downgrades economic growth and unemployment forecasts and points to much bigger budget deficits.
"It's blatantly obvious - Labor has lost control of the budget and is losing control of the economy," Mr Hockey told reporters in Melbourne.
The budget deficit is now expected to be $30.1 billion in 2013/14, almost double the original estimate.
Larger deficits are also forecast for the next two years before Australia reaches a surplus of $4 billion in 2016/17, which is smaller than the $6.6 billion expected two months ago.
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"The budget is in freefall," Mr Hockey said.
"The budget has fallen $3 billion a week over the last 10 weeks."
Mr Hockey said if Labor didn't call the federal election this weekend, Prime Minister Kevin Rudd would need to recall parliament to seek approval to raise the national debt ceiling.
It's currently $300 billion but this could be breached in coming months.
Mr Hockey said he was not in any position to start setting timetables for the budget should the coalition win the election.
"I will not make the same sort of rash promises that the Labor party does," he said.
"I do not believe these numbers. If this is the best the Labor party has we should all fear the worst."
Shadow finance minister Andrew Robb said the government was killing both consumer and business confidence.
"People are anxious," he said.
"That is why they are saving 10 per cent of their disposable income, historically we saved one or two per cent.
He said businesses are reluctant to invest.
"They don't know what rule changes are going to take place, they do not know what is going to happen with the budget, they get no consultation," he said.
