Australia PM: Over $7 bln to be wiped off tax revenues by global recession

Special Report:Global Financial Crisis

CANBERRA, Feb. 2 (Chinese media) -- Australian Prime

Minister Kevin Rudd said here on Monday that a total of 115 billion Australian

dollars (72.4 billion U.S. dollars) were expected to be wiped off tax revenues

by the global recession over the next four years, sending the budget reeling

into deficit.

The figure is 75 billion Australian dollars more than

predicted in November in the Mid-Year Economic and Fiscal Outlook (MYEFO), and

reflects falling business and income tax receipts, as well as a halving in

China's economic growth.

"That means an impact directly on our budget, that

means, therefore, of course, a temporary budget deficit," Rudd told reporters in

Canberra.

"That figure equals about half the government's total

tax receipts in a given year, although of course that figure ... is spread

across the forward estimates," he said.

His announcement followed the International Monetary

Fund's prediction last week that the Australian economy would contract by0.2

percent in 2009, and at the very best stall to a position of zero growth.

Given the rapidly changing circumstances of the

global recession, Rudd said the government would soon give a full updated

statement to parliament reconciling the economic figures for the period ahead.