The financial devastation caused by the coronavirus has caused the budget deficit for last financial year to surge to $85.8 billion before exploding to at least $184.5 billion this year.

Alarmingly, today’s economic update also forecasts the official unemployment rate climbing to 9.25% by the end of the year as the labour market continues to deteriorate.

Australia’s debt will also reach levels never seen before, with gross debt hitting $851.9 billion this financial year, climbing past the current legislated limit of the maximum amount of debt the nation can carry.

Finance Minister Mathias Corman says the situation could’ve been worse if the nation’s finance weren’t in order before the pandemic struck.

“We were in a stronger fiscal position going into this period which means we still have the fiscal capacity to provide more support if and as required into the future,

“This is important for Australia.”

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