Treasurer Scott Morrison is expected announce budget cuts for ministries. Morrison and Finance Minister Mathias Cormann will be handing over the review on Tuesday in Perth. The said report will illustrate weakened economic growth, larger deficits and a sign of surplus in the economic scene.

According to reports, they will announce budget cuts amounting up to $5 billion to $7 billion to pay off suite of measures, including the $1.1 billion innovation agenda, Labor's bank reversal, deposit tax, road spending and humanitarian refugee intake among others.

Communications Minister Mitch Fifield said, "Most portfolios have had to make a contribution to savings as is appropriate," during his interview with Sky News on Monday.

For Shadow Assistant Treasurer Andrew Leigh, the poor might suffer the most from the cuts. "We know for the quantum of savings the treasurer is talking about, they can only be found through cuts to the most vulnerable," he also told Sky News.

According to economists, the 2015/2016 deficit was estimated to be around $37 billion and $40 billion.

These budget cuts are mainly caused by the drop of commodity prices hitting tax revenues. Economists have been anticipating the deterioration that is said to occur within the next 4-year budget estimates.

Contact the writer at feedback@ibtimes.com.au, or let us know what you think below.

RELATED STORIES