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SYDNEY, Feb 1 (Reuters) - Australian Treasurer Wayne Swan said on Sunday that Australia would go into a "temporary" budget deficit as a result of the global economic crisis.
Swan told Channel Nine television that despite Australia's generally resilient economy, it was not able to escape the effects of the crisis elsewhere in the world, especially in China, a major market for Australia's resources exports.
The global downturn meant company tax revenues could be down as much as $A50 billion ($31.9 billion) over four years, Swan said.
"Of course what that means is, because of the unwinding of China, the global recession, it will be inevitable that Australia has a temporary budget deficit," Swan said.
His announcement has been widely expected. Since October, the government has pledged stimulatory spending worth more than A$36 billion, which has eroded a budget surplus built up by its conservative predecessor.
Analysts predict the budget deficit could hit A$40 billion by 2010, when elections are due, and a new package of economic stimulus measures is expected to be announced this week.
Swan would not comment on the content of any new measures, saying all options were open, but ruled out sweeping across-the-board tax cuts which the opposition has been calling for.
Last week Swan said "overwhelming force" was needed to combat the fiscal crisis.
The International Monetary Fund has forecast that Australia's economy will contract by 0.2 percent in 2009. Despite the grim outlook by the IMF, Swan said Australia remained better positioned than many other countries around the world to weather the financial crisis. (Editing by Giles Elgood) (Sydney newsroom +61 2 93731800) (A$1=$0.64)