Next month’s update of the federal budget will forecast a bigger deficit for 2024-25 than was predicted in the May budget, according to the Deloitte Access Economics’ Budget Monitor, released on Tuesday.

Deloitte forecasts a deficit for the current financial year of $33.5 billion, $5.2 billion worse than the $28.3 billion deficit that the budget forecast.

Multiple factors are contributing to the worsening figure, including the flat economy, less company tax revenue than earlier expected, the overseas situation particularly the problems in China’s economy, and continued spending pressures.

In his economic statement to parliament last week, Treasurer Jim Chalmers foreshadowed the budget update was expected to revise company tax receipts down for the first time since 2020.

Deloitte says: “While Australia appears to have achieved the much-vaunted soft economic landing that policy makers had been seeking, the federal fiscal position is........

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