Budget deficit on target as of August

The federal budget is running pretty much on target so far this year, despite concerns the Abbott government could be falling behind due to several factors, including declining commodity prices.

Finance Minister Mathias Cormann released financial statements for July and August on Friday - the first two months of the financial year.

As of August, the underlying budget deficit was $12.3 billion compared to the $12.5 billion that had been expected at this time of the 2014/15 financial year.

The slightly better outcome of just over $200 million reflected higher than expected receipts and lower cash payments, the statement said.

For the full 2014/15 year, a budget deficit of $29.8 billion is forecast.