Sydney — Australia’s conservative government on Monday forecast a A$10bn deterioration in its budget deficit over the next four years but still hoped to snatch a surplus by 2021 and forestall a damaging downgrade of its top credit rating. There have been fears the update could trigger a cut in the country’s prized triple-A rating and push up borrowing costs on more than a trillion dollars of federal, state and bank debt. S&P Global Ratings, which put Australia on negative watch in July, said the update had no immediate effect on the rating, but it again warned more revenue or saving steps would be needed to get back to surplus. "The government’s worsening forecast ... further pressures the rating," S&P said. "We remain pessimistic about the government’s ability to close existing budget deficits and return a balanced budget by the year ending June 30, 2021." Facing slower economic growth and a seemingly intractable deficit, Treasurer Scott Morrison reaffirmed an aspiration to return ...
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