Due to global financial crisis, projected Australian federal government revenue dropped by more than 100 billion Australian dollars (72 billion U.S. dollars) since the last budget, Treasurer Wayne Swan said on Sunday, according to Xinhua.
"I think it (the shortfall) has got substantially worse," Smith told ABC TV.
A year ago, Swan said the International Monetary Fund (IMF) had been predicting world growth of four percent.
A week ago, it has downgraded its forecast to minus 1.3 percent.
"So, essentially, the whole world has turned upside down and, of course, that means global growth is contracting," Swan said.
When Swan has delivered Labor's first budget in 13 years in May last year, Treasury has been forecasting Australian federal government revenue of 319 billion Australian dollars (233 billion U.S. dollars) for the 2008/09 financial year.
But that was before the global financial crisis pushed Australia into recession.
Between the time of the last budget in May 2008 and February 2009, there has been a government revenue shortfall of 115 billion Australian dollars (84 billion U.S. dollars), Swan said.