Points Economist: Forecast Deficit and Budget Economist

points economist: Key points Economist believes Government will continue to claim budget due to return to balance in 2020/21Three main international credit agencies will be watching MYEFO carefully Labor attacks Government for failing to deliver on its promises Deloitte Access Economics' Chris Richardson, a respected budget economist, is predicting the forecast deficit for this financial year to blow out to 40 billion, compared with an underlying cash deficit of 37.1 billion expected in May, according to Australian Broadcasting Corporation. The Mid-Year Economic and Fiscal Outlook MYEFO is due to be handed down at noon in Canberra. Photo AAP/Aaron Bunch ABC News Related Story Government prepares for lacklustre economic outlook Related Story 'Reasonably high' chance AAA rating will be lost before Christmas Related Story Standard & Poor's reiterates Australian credit rating warning Map Australia Federal Treasurer Scott Morrison is today expected to unveil a mid-year budget update with a deeper deficit than forecast in the May budget. Mr Richardson believes the Government will continue to claim the budget is due to return to balance in 2020/21, as it did in the May budget, but he doubts it will be able to do so. You won't get a surplus in Australia on existing policies, he said. On our figures it won't reach that, but yes, I think they will stick to that story, he told AM. Mr Richardson cited a lack of willingness by the Opposition to compromise with the Government over budget savings and unsteadiness in China's economy as possible barriers to achieving surplus. (news.financializer.com). As reported in the news.