Treasurer Joe Hockey has warned the deficit could blow out again as he prepares to write-off up to $25 billion more in revenue over the next four years by factoring in an iron ore price as low as $35-a-tonne in the May 12 budget.
The price, $US25 lower than what was said to be a conservative forecast of $US60 contained in December's budget update, will mean there is about $6.25 billion less revenue a year than the government thought it had just five months ago.
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Phillip Coorey is the political editor based in Canberra. He is a two-time winner of the Paul Lyneham award for press gallery excellence. Connect with Phillip on Facebook and Twitter. Email Phillip at pcoorey@afr.com
Laura Tingle is The Australian Financial Review's former political editor. She is now chief political correspondent for the ABC's 7.30 program. Connect with Laura on Facebook and Twitter.
