The Gillard government has upheld its promise to return the federal budget to surplus in fiscal 2013, in the largest budget turnaround in over 50 years, despite a larger than expected deficit forecast for the current year. The government expects the deficit for the current year to reach $44.4 billion, or 3 per cent of gross domestic product (GDP), up from $37.1 billion forecast in November’s mid-year outlook. The deficit is expected to swing to a thin surplus of $1.5 billion in fiscal 2013, or 0.1 per cent of GDP -- in line with its previous forecast – before growing to a surplus of $2 billion in fiscal 2014. ... (full story)