Australia's budget deficit may last for a decade if urgent "remedial action" is not taken to improve the country's finances, its government has warned.

In its latest economic outlook, the deficit was forecast to rise to 47bn Australian dollars ($42bn; £26bn) in the year to June as a result of a weakening economy.

That compares with a forecast for a A$30bn deficit made in August.

Australian Treasurer Joe Hockey has warned that the country's fiscal position is "unsustainable"

The country's 2014-2015 growth forecast was also downgraded to 2.5% from 3%.

Treasurer Joe Hockey said the economy was undergoing a tough transition and pledged to tighten spending.

(Source: BBC)