Australia is set to reveal the scale of its budget deficit as the government continues to prop up businesses and employees hit by the COVID-19 lockdown.
Federal Treasurer Josh Frydenberg will deliver a statement revealing the economic impacts of the lockdown on Thursday, as Victoria is hit by a second wave of coronavirus.
The Australian reports that the pre-budget economic statement will reveal a budget deficit of just under AU$90 billion for the 2019-2020 financial year. This is likely to more than double to almost AU$190 billion for the 2020-2021 financial year, following record falls in revenue and investment.
Thursday's update will also reveal the impact of Victoria's six-week lockdown, which is forecast to wipe $3.3 billion off the national economy.
Mr Frydenberg said this was the harsh reality of this pandemic.
"You're going to see eye-watering numbers around debt and deficit, numbers that Australians have never seen before," he told Nine's Today show.
"The coronavirus has required the government to spend unprecedented amounts of money to support people in need."
This comes after the government announced a JobSeeker extension on Tuesday for those affected by the pandemic.
The payment scheme, originally set to end in September 2020, has extended to March 2021 at a reduced rate of AU$1200 a fortnight from AU$1500.
Organisations will need to reassess their eligibility for the extension with proof COVID-19 has affected their company, according to the report.
The government is currently spending $11 billion a month on JobSeeker, Mr Frydenberg told Today show, which he says "is unsustainable if we keep that programme going indefinitely".
"So we're tapering it down. We're taking into account the circumstances across the country and we're ensuring that people who need the money most get it."
