Federal government will need every bit of extra fiscal room

It seems almost certain now that the Federal government will meet its timetable for eliminating the budget deficit before fiscal year 2015-16, which will give it the wiggle room it needed to deliver on its promised tax cuts ahead of next year's federal election. But with the economy likely to underperform the consensus view over this period, the government will need every bit of this fiscal room and more to help bolster an otherwise sagging economy.