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Treasurer reveals biggest deficit since World War II

Treasurer Josh Frydenberg has revealed the biggest deficit since World War II with the budget deficit at $85.8 billion in 2019-20 and $184.5 billion in 2020-21.

Mr Frydenberg said the unemployment rate was expected to reach 9.25 per cent in the December quarter.

Without government support measures unemployment would have peaked at close to 15 per cent, according to the Treasurer.

“These harsh numbers reflect the harsh reality we face,” he said.

“The economic outlook remains very uncertain.”

Economics Editor at The Age and Sydney Morning Shane Wright told Gareth Parker on Mornings the Federal Government has a challenge on its hands trying to balance the ledger, even with historically low interest rates.

Image: Nine News