Mr Swan said from late last year and early this year there has been a unique economic event – lower terms of trade but a dollar that didn’t budge.
This had a ‘dramatic impact’ on the profitability of companies and prices in the economy.
‘As a consequence of that, that’s caused a hit, like a sledgehammer to revenues in the budget, since the mid-year update of something like $7.5 billion,’ Mr Swan told ABC TV on Sunday.
‘Of course the impact won’t just be to this financial year but it will also be across the forward estimates.’
Mr Swan said the next budget was being delivered in ‘very challenging circumstances’.
Source: Sky News Australia
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