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No budget deficit repair until jobless below 6pc: Frydenberg

Phillip Coorey

The federal budget will remain in deficit for the foreseeable future and the government will not focus on a return to surplus and stabilising debt until the unemployment rate is "comfortably'' below 6 per cent, Treasurer Josh Frydenberg says.

The budget to be released on October 6 is expected to forecast gross debt to exceed 45 per cent of GDP, pushing it close to or over $1 trillion, while the deficit for this financial year is expected to be above $200 billion. Deficits will be forecast for the subsequent three years as well.

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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

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    Original URL: https://www.afr.com/politics/federal/smaller-economy-will-prolong-deficits-frydenberg-20200923-p55yl8