Just three months after Australia received its fifth prime minister in as many years, calls are already abound for early federal elections.
Voting to elect officials to the House of Representatives and Senate, which make up the Parliament of Australia, are widely expected to occur around September or October next year but a higher-than-expected budget deficit forecast could push the date to early 2016, according to Goldman Sachs.
The Treasury Department's Mid-year Economic and Fiscal Outlook (MYEFO) for 2015-16 on Tuesday revealed the deficit could hit A$37.4 billion [$27.1 billion], or 2.3 percent of gross domestic product (GDP). That's higher than the A$35.1 billion forecast in May.
"Ultimately, it is this accumulation in debt and the ongoing risks to economic growth in 2016 that risks a federal election occurring in early 2016," Goldman Sachs economists said in a Tuesday note.
"The MYEFO shows clearly that Australia's attempts at fiscal consolidation continue to prove elusive in the face of commodity price deflation, weak economic growth and an obstructionist Senate."