Friday, April 27, 2012 Far from delivering the promised $1.5 billion budget surplus, Treasurer Wayne Swan is on track to deliver a deficit of $8 billion unless he cuts far harder than he had been planning according to a private sector analysis traditionally delivered a week before the budget. Macroeconomics, a consultancy run by former Treasury modeller Stephen Anthony finds the 2012-13 budget position $10 billion worse than forecast in the government's November mid-year update. Most of the collapse is due to a $6 billion shortfall in company tax revenue compared to what was expected at the time of the update. "It's losses throughout the tax base," Mr Anthony told the Herald . "The Tax Office reckon they've reached 24 per cent of GDP. Usually they are 6 to 8 per cent of GDP. These are losses spread amongst individuals, super funds, trusts and companies, and they include capital losses in place of capital gains." "Along with declining terms of trade, a weaker than expected economy and mining industry depreciation expenses in place of taxable profits, it has put a spanner in the works." The Macroeconomics model projects structural budget deficits for the next decade and continued growth in government debt unless very big cuts are made tuesday week and spending growth is kept tight for the rest of the forward estimates. "The Treasurer needs to cut $10 billion to deliver a surplus and $15 billion to deliver a structural surplus," Mr Anthony said. "Otherwise there will be no sustainable