The Federal Government has released its election-eve budget update, revealing massive revenue write-downs since the May budget, deeper budget deficits for the next three years and $17.4 billion worth of cuts and savings measures.

The Government says a substantial decrease in nominal GDP has had a major impact on expected tax receipts, leaving a $33.3 billion revenue black hole across the four years of the forward estimates.

But the Opposition has seized on the dire budget figures to bolster its argument that Labor cannot manage the economy.

"It is patently obvious Labor has lost control of the budget and it is losing control of the economy," Opposition treasury spokesman Joe Hockey said.

Key points: Deeper budget deficits expected for next three years: $30 billion in 2013-14; $24 billion in 2014-15; and $4.7 billion in 2015-16

Deeper budget deficits expected for next three years: $30 billion in 2013-14; $24 billion in 2014-15; and $4.7 billion in 2015-16 Government to recoup $17.4 billion by way of cuts and tax hikes, including 0.05 per cent levy on bank deposits up to $250,000 and tax hike on cigarettes

Government to recoup $17.4 billion by way of cuts and tax hikes, including 0.05 per cent levy on bank deposits up to $250,000 and tax hike on cigarettes Unemployment to rise to 6.25 per cent, representing a further 70,000 out of work

Unemployment to rise to 6.25 per cent, representing a further 70,000 out of work Cost of managing asylum seekers has blown out by another $350 million, offset $236 million in cuts to AusAID programs

Cost of managing asylum seekers has blown out by another $350 million, offset $236 million in cuts to AusAID programs Government says the figures reveal a "medium-term consolidation and path back to surplus"

Government says the figures reveal a "medium-term consolidation and path back to surplus" Look back on live coverage from the ABC's political reporters and correspondents

"The budget is in freefall. The budget has fallen $3 billion per week over the last 10 weeks."

Treasurer Chris Bowen says the budget update sets out the Government's economic plan that it will take in to the federal election campaign.

"This is our economic plan," he said.

"It has our bottom line in it. It has our costings and our funding proposals.

"The Government's doing this in an open, transparent way. The alternative government should be doing the same."

The Government has blamed the revenue black hole on a number of factors, including lower wages growth and faster-than-expected falls in commodity prices.

"Australia is undergoing an economic transition," Mr Bowen said.

"Not a crisis but a transition, which needs careful economic management. This transition is brought about by the Chinese mining investment boom coming to an end."

Unemployment is also forecast to rise from the May budget figure of 5.75 per cent to 6.25 per cent, which represents an extra 70,000 people out of work.

The Government says it has decided to let those losses flow through the budget in the near years to ensure growth and jobs are not put at further risk.

Sorry, this video has expired The budget is in freefall: Hockey ( ABC News )

"This is what responsible economic management requires," Finance Minister Penny Wong said.

"It is making these sorts of decisions recognising the economic challenges the nation faces."

But the Opposition has warned that the nation's economy will only suffer more if Labor is re-elected.

"If this is the state of the budget before the election, imagine what it's going to look like if Labor is re-elected," Mr Hockey said.

"We are going to find the truth of the budget numbers only after the election."

'Balanced budget' disappears, deeper deficits

But the write-downs have pushed the 2013-14 deficit out to $30 billion, up $12 billion from the May budget and the 2014-15 deficit is up from $11 billion to $24 billion.

In 2015-16, May's forecast of a "balanced budget" has disappeared and in its place sits a $4.7 billion deficit.

The surplus forecast for the last of the forward estimates years remains, but has been significantly trimmed from $6.6 billion to $4 billion.

Billions have been lost from the budget forecasts since May. ( ABC News Online )

The Government says the figures reveal a "medium-term consolidation and path back to surplus" which it says is appropriate given "Australia's strong economic fundamentals".

Cuts and tax hikes worth $17.4 billion have been made, mostly in the out years "to provide a pathway to surplus".

The Government has already announced a tax hike on cigarettes from December 1 of 12.5 per cent each year for four years, raising $5.3 billion over the forward estimates.

A 0.05 per cent levy on bank deposits up to $250,000 will be collected from January 1, 2016 and is forecast to raise $733 million in its first 18 months.

Changes to fringe benefits tax (FBT) arrangements for cars are also forecast to raise $1.8 billion.

Another $1.3 billion will be added to the budget bottom line through chasing unpaid tax and superannuation and raising the threshold from $2,000 to $6,000 on lost super accounts to be transferred to the ATO.

AusAID cuts to help with costly resettlement plan

The cost of managing the surging numbers of asylum seekers has also blown out by another $350 million, adding to the May budget's forecast of an extra $1.3 billion next financial year.

The Government's plan to process and resettle asylum seekers in Papua New Guinea is also proving to be a costly one at $1.1 billion over the next four years, even after the Government has taken into account an expected drop in onshore processing, saving $423 million.

Those costs have been partly offset by $236 million in cuts to AusAID programs.

Sorry, this video has expired Milne slams PNG asylum deal

Greens leader Christine Milne has used the update to again slam the Government’s offshore settlement policy.

"Labor's economic statement is really a statement of $1 billion worth of cruelty inflicted on asylum seekers," she said.

"What they are doing is virtually committing all our aid budget to bribing Papua New Guinea and running detention centres."

Australia’s aid budget will be cut by $879 million over the forward estimates, though the Government says spending will still increase overall by 26 per cent.

Possible election sweeteners yet to be announced

In one move that could be seen as an election sweetener, the Treasurer has announced a delay to the $2,000 cap on work-related education expenses claimed as tax deductions.

The delay, from a planned introduction of mid next year to 1 July 2015, will allow for "further consultation on how best to target excessive claims while ensuring the impact on university enrolments and genuine continuing professional development is minimised".

More sweeteners could be contained in the mini-budget's line item listed as "decisions taken but not yet announced" where the Government has set aside $500 million over the next two financial years.

One probable beneficiary of extra funding is the car industry and the Government is expected to announce more support in coming days.

However, Senator Wong says the money could well be listed like that because it is "commercial in confidence".

Forecast growth in real GDP has been lowered by a quarter of a percentage point for this financial year and next.