Budget deficit smaller as of February

The federal government has forked out some $4 billion less in cash payments so far this financial year than it predicted in December.

As a result the 2014/15 underlying budget deficit is running at $40.5 billion after the eight months to end of February, rather than $44.6 billion anticipated in the mid-year economic and fiscal outlook, the government's latest monthly financial statement shows.

For the full-year to June 30, the underlying deficit is forecast to be $40.4 billion.