Treasurer Wayne Swan says investment from the revived resource sector is now gaining momentum but it is expected to produce lesser revenue than the last boom it had.

A $5billion cash deficit confronts the government making maintenance of a savings surplus for the future an important factor.
Swan says, factors such as consumer caution caused by the global financial crisis, exchange rate differences and the failure of private sector investments in mining will initiated this less powerful boom.

Australian economy is expected to soften with the emergence of a short-term revenue shortfall caused by recent natural disasters in addition to the fore-mentioned factors.

''Mining Boom Mark II is gathering pace and it will mean extraordinary new levels of income flowing into Australia. This shall building national wealth and revenues,'' declares Swan.

On the contrary Swan related that the capacity of the country’s economy and workforce will be put to test as structural adjustments may come out.

Swan exposes that “rivers of gold” are no more for Australia and conditions in the present ''Mining Boom Mark II'' (as Swan describes it) would be very much different from the previous ones.

According to Swan, through out the previous ''Mining Boom Mark I'' Australia experienced an average exchange rate of 78c against the US dollar in compared to an average of 98c under the present boom.

''Sectors like tourism, education and manufacturing are all feeling the threat of international competition. Mining investment next year will, for the first time, outstrip private capital investment plans for the rest of the economy,'' Swan furthers.

Reports from The West Australian newspaper yesterday declared Treasury officers were preparing for a ''second budget'' or ''major statement'' later this year. The Government assured the release of details of the policy mid-year. It will first outline the plans on tax cuts for workers, increases in welfare payments and handouts to exporters.