The news isn't as bad as it might seem. And I give Joe Hockey high marks for his wise response to it.

Despite any contrary impression the denizens of Canberra might have left you with, the budget is not the economy.

Federal Treasurer Joe Hockey.

The economy, in which you and I live, work and spend, is much bigger and more important than Hockey's budget.

The $10 billion blowout in the expected budget deficit for this financial year is largely the result of falling mineral commodity prices and weaker-than-expected growth in employment and wages, leading to lower growth in tax collection, plus a bit from the government's troubles with the Senate.