Following the cut by the Reserve Bank of Australia Friday of the country's growth forecast to 3.25 per cent for 2011/12, Treasurer Wayne Swan said Monday the national coffers could still return to a budget surplus in 2012/13 as planned.

That goal, however, is based on imposition of tough measures, although he has not yet specified what cuts would be made on the 2012/13 budgets to reach it. Swan is scheduled to reveal the details in the Mid-Year Economic and Fiscal Outlook report due for release before Christmas.

Swan's optimistic outlook contrasts with a Deloitte Access Economics forecast that Australia will register a budget deficit of $1.9 billion in 2012/13 instead of the $3.5-billion projected surplus.

Deloitte Access attributes the estimated deficit to weak jobs market, lower company profits, decline in share markets and lower house prices which would all impact government income. Chris Richardson, director of Deloitte Access, said a surplus promise is a trademark of budgets drawn up by politicians, not economists.

The opposition supported Deloitte Access forecast.

"Labor can't deliver surpluses, it's not in their DNA.... Whilst they lecture the rest of the world about fiscal austerity, they fail to undertake it themselves," News.com.au quoted Opposition Treasury spokesman Joe Hockey.

Richardson was critical of more budget cuts as indicated by the treasurer because such measures would only create risks at a time when the Australian economy is already weak.

"That is danger territory. If it were a big deficit, the government would accept it. In the politics at the moment, they might try hard to impose a surplus on a fragile economy," Richardson told The Australian.

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