Scott Morrison has no intention of repeating the mistakes of former Labor treasurer Wayne Swan - predicting budget surpluses only to look "foolish" when they are not met.
A new analysis by Deloitte Access Economics suggests a return to surplus is now beyond the 2019/20 financial year predicted by former Liberal treasurer Joe Hockey in May.
It estimates there will be a $38 billion deterioration in the budget over the next four years compared to forecasts made in May.
It means the 2015/16 budget deficit alone will blow out to $40.3 billion from the $35.1 billion estimated by Mr Hockey.
Mr Morrison said he will announce his own formal budget numbers when he hands down the mid-year review in a couple of weeks.
"Previous governments have stood there hairy-chested at the despatch box and promised four years of surpluses," the present treasurer said on Monday, adding that Mr Swan had looked "quite foolish" when he did that.
"I am not going to go down that path. I will go on about the work of restoring the budget."
However, Mr Morrison said the Deloitte report - that largely blames the deterioration on the economic slowdown in China hitting Australian company profits and tax returns - highlights the need to grow the economy and control expenditure.
New business figures indicated the national accounts on Wednesday will likely show the economy expanded faster in the September quarter than three months earlier, albeit leaving annual growth only just above two per cent and below the long term average.
Mr Morrison told parliament company profits in the September quarter were better than economists predicted, wage outcomes were strongest over two quarters since June 2012, while business inventories increased.
But shadow assistant treasurer Andrew Leigh said Deloitte's findings were a worry and written prior to last week's capital expenditure figures showing their weakest result since 1987.
"It does point to the fact that you need a clear economic plan as to where we go next," he told Sky News.
South Australian independent senator Nick Xenophon said the analysis highlights the economy's vulnerability and reliance on China.
"It also highlights the need for the economy to keep the manufacturing sector," he said.
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