Swan flags further cuts

TREASURER Wayne Swan has flagged additional spending cuts to ensure the federal budget returns to a promised surplus in 2012-13.

Mr Swan is standing by the surplus promise despite independent forecaster Deloitte Access Economics predicting a small deficit of $1.9 billion.

"We are certainly determined to bring our budget back to surplus in 2012/13," he told ABC Radio on Monday.

"That means tough decisions will have to be made in terms of the budget."

The government would be looking for savings "elsewhere in the budget", something it did every year.

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