It will take at least six years for the federal budget to return to surplus.
Although the Government has been describing the need for the budget to go into temporary deficit, it is believed Treasury has advised the Government to expect deficits until at least 2015-16.
The long road back to surplus will be outlined in next week's federal budget.
The Treasurer Wayne Swan and the Oppostion leader Malcolm Turnbull have clashed again over debt and deficit.
Mr Turbull said the Government was confused because it was spending and saving at the same time.
A massive drop-off in tax revenue caused by the global recession is the prime reason for the forecast run of deficits.
Mr Swan said Mr Turnbull should own up to how he would avoid deficit by stating which services he would cut or which taxes he would raise.
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