Don't let Santa down, urges Hockey

Federal treasurer Joe Hockey has urged shoppers to spend up big this Christmas. (AAP)

The government wants shoppers to spend up big this Christmas, as it grapples with a blow-out in the deficit.

Don't let Santa - or Joe Hockey - down. Get out and spend up big this Christmas.

The federal treasurer has urged consumers to put the deteriorating federal budget out of mind these holidays.

"Don't let Santa down, go and spend for Christmas," the treasurer said on ABC radio.

"Household consumption is actually one of the biggest drivers of economic growth."

Just weeks before the release of Mr Hockey's mid-year economic review, Deloitte Access Economics has forecast a worse than expected 2014/15 deficit of $34.7 billion.

Mr Hockey is calling for calm despite the blowout, saying the Australian economy is "back on track" and showing real signs of momentum.

The government remains absolutely committed to returning the budget to surplus, he said.

"It's not a time for panic, it is a time for a rational approach to the challenges that are before us," he said.

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