Morrison rejects gloom in face of budget woes

Treasurer Scott Morrison has rejected doom-and-gloom reports of China's impact on Australia, urging people to have "cool heads" in the face of a two-year low in the stock market.

Mr Morrison told Sky News on Monday that people needed to be "cautious" about reports of global volatility and defended the economy as "very sound".

A Deloitte Access Economics report released on Monday found growth in the United States was countering some effects of China's slowdown.

But Deloitte's Chris Richardson also described the combined effects of low commodity prices and the China slowdown as "a wrecking ball for the tax take".

Mr Morrison said on 3AW Radio the government was being "realistic about what is happening", but committed to only reducing spending, not increasing taxes.

Mr Richardson wrote budget repair could take a decade, but that there were "large and ugly decisions ahead" if balancing the federal budget was the aim.

Source: Caboolture News

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