The Mid-Year Economic and Fiscal Outlook (MYEFO) released by treasurer Joe Hockey warns that "Australia is not living within its means" as the 2013/14 budget deficit reached $17.7 billion.
The deficit went to show that the coalition should take immediate steps to address the issues left by the former Labor government.
With the deficit, Australia had been experiencing a slow growth which resulted in a $37 billion reduction in taxes. The country's economy became sluggish expanding by a sub-trend of 2.5 per cent in 2013/14 and into 2014/15.
Unemployment is forecast to be at 6 per cent by mid-2014, increasing by 2016/17 at 6.25 per cent. Government debt was forecasted to become worse at $320 billion, continuously increasing to $460 billion by 2016/17.
Key Points of Mr Hockey's Speech to the National Press Club on Tuesday, Dec 17:
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