Budget to be $38bn worse off, economist says

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China's slowdown means the federal budget will be $38bn worse off over the next four years, a new report has claimed.

Deloitte Access Economics' Budget Monitor report has forecast a budget deficit blow out to $40.3bn for 2015/16. Over the next four years, Deloitte economist Chris Richardson said the budget is set to be $38bn worse off.

The Chinese slowdown combined with low Australian wage growth is set to hit the budget hard. Richardson took aim at both sides of politics for the blow out.

"Both sides of politics strikingly mismanaged our national finances through the boom years, and the repair task keeps getting harder," he said.