Australian PM warns deficit may be needed

26/11/2008 22:00:02

The Australian Prime Minister Kevin Rudd has conceded it may be necessary for the budget to go into deficit if economic conditions continue to worsen.

Mr Rudd addressed the parliament for the first time since returning from a meeting with leaders of the Asia Pacific in Peru at the weekend.

He says if the global economy continues to slow again, government revenue will fall and a deficit may be necessary.

"Under those circumstances, it would be responsible to draw further from the surplus and if necessary, to use a temporary deficit to begin investing in our future infrastructure need, including hospitals schools, TAFEs, universities, ports, road, urban rail and high speed broadband."

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