HAWKE SEES FOUR BILLION DLR BUDGET DEFICIT
Australian Prime Minister Bob Hawke and
Treasurer Paul Keating said the government's 1986/87 Budget
deficit could hit four billion dlrs against the official
forecast of 3.5 billion.
    Hawke told a Sydney radio station the deficit "may turn out
at four billion." He and Keating last week warned that the
budget deficit was running above target and vowed sharp
decisions on spending in a May 14 economic statement.
    A four billion dollar Budget deficit would be in line with
private economists' forecasts and compares with a 1985/86
shortfall of 5.73 billion dlrs.
    Hawke said the 1986/87 deficit would be equal to 1.5 pct of
forecast Gross Domestic Product against five pct when he took
office during the 1982/83 year.
    "In money terms (the deficit has been reduced) from the 9.6
billion dlrs that we inherited ... Down to about 3.6 billion,
it may turn out at four billion dlrs," Hawke said.
    In a separate interview Keating said: "The deficit for this
year, projected, was 3.5 billion .... It is in fact running ...
Over four billion and we will be trying to bring that in close
to target."
 REUTER
