Special Report: Global Financial Crisis

    CANBERRA, Feb. 2 (Xinhua) -- Australian Prime Minister Kevin Rudd said here on Monday that a total of 115 billion Australian dollars (72.4 billion U.S. dollars) were expected to be wiped off tax revenues by the global recession over the next four years, sending the budget reeling into deficit.

    The figure is 75 billion Australian dollars more than predicted in November in the Mid-Year Economic and Fiscal Outlook (MYEFO), and reflects falling business and income tax receipts, as well as a halving in China's economic growth.

    "That means an impact directly on our budget, that means, therefore, of course, a temporary budget deficit," Rudd told reporters in Canberra.

    "That figure equals about half the government's total tax receipts in a given year, although of course that figure ... is spread across the forward estimates," he said.

    His announcement followed the International Monetary Fund's prediction last week that the Australian economy would contract by0.2 percent in 2009, and at the very best stall to a position of zero growth.

    Given the rapidly changing circumstances of the global recession, Rudd said the government would soon give a full updated statement to parliament reconciling the economic figures for the period ahead.