We have now revised our estimates of the Federal budget deficits for 2019/20 and 2020/21 to $95bn (4.8% of GDP) and $230bn (11.7% of GDP) respectively, amended from $80bn and $170bn. The lift in the estimated deficit for 2019/20 is due to an upward revision to the cyclical deficit. The 2020/21 budget deficit is comprised of: a cyclical deficit of $100bn (5% of GDP); around $90bn in fiscal stimulus – as already announced; as well as about $50bn of new spending – which includes approximately $35bn to extend and modify the JobKeeper (JKP) and JobSeeker packages (JSP) plus a $15bn stimulus package to be unveiled on ... (full story)