Indian PM soothes China border tensions

INDIA'S Prime Minister Manmohan Singh says he believes a border dispute over an alleged incursion by Chinese soldiers can be resolved, the Press Trust of India reports.

"It is a localised problem, we do believe it can be solved," Singh was quoted as saying by the news agency on Saturday after Chinese soldiers were accused of intruding across the disputed border in the Ladakh region earlier this month.

The incident has marked a renewal of tensions between the Asian neighbours whose relations are often prickly - a legacy of a 1962 border war.

Singh's statement came after India's Defence Secretary Shashi Kant Sharma presented a report on the incursion to a parliamentary watchdog on Friday in which local media said he alleged Chinese soldiers had advanced nearly 20 kilometres into Indian-claimed territory.

The prime minister's comments, his first on the dispute, echoed statements of other government ministers playing down the alleged incursion in the western part of Indian-held Kashmir's Ladakh region and insisting it can be settled amicably.

"We have a plan, we do not want to accentuate the situation," Singh said, without elaborating.

Lower-level talks between military officials have so far failed to break the impasse.

According to officials in New Delhi, a platoon of Chinese troops set up a camp inside Indian territory on April 15.

Indian Foreign Minister Salman Khurshid announced earlier in the week he will head for China on May 8, saying both countries had a mutual interest in not allowing the dispute to "destroy" long-term progress in ties.

A foreign ministry official has said new Chinese Premier Li Keqiang is due to travel to New Delhi late next month, without giving an exact date.

India has called on the Chinese soldiers to withdraw while China has denied any wrongdoing.

In 1962, China gave India a bloody nose in the war fought in the Himalayan regions of Ladakh and Arunachal Pradesh.

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Bombing suspect's friends 'shocked'

Two friends of the alleged Boston bomber have denied any knowledge of the deadly attack plot. Source: AAP

TWO university friends of Boston Marathon bombing suspect Dzhokhar Tsarnaev who were jailed by immigration authorities the day after his capture had nothing to do with the deadly attack, a lawyer for one of them says.

They had also seen no hints that he harboured any violent thoughts or terrorist sympathies.

Azamat Tazhayakov and Dias Kadyrbayev, who are from Kazakhstan, were classmates with Tsarnaev at the University of Massachusetts Dartmouth. They appeared alongside him in a recent photograph of a group of young men visiting New York City's Times Square.

They were detained on April 20 after being questioned in connection with the bombing, which had killed three people and injured more than 260 others a few days earlier.

"These kids are just as shocked and horrified about what happened as everyone else," Kadyrbayev's lawyer, Robert Stahl, said in a phone interview on Friday.

"They can't even fathom something like this from a kid who seemed to be a typical young college student."

Tazhayakov and Kadyrbayev had been interviewed at length, twice, by FBI agents and had co-operated fully, Stahl said.

They were not suspects but were being held for violating their student visas by not regularly attending classes, Stahl said.

They are being detained at a county jail in Boston.

The Kazakh Foreign Ministry said earlier this week that US authorities came across the two while searching for "possible links and contacts" to Tsarnaev, a student at the university.

US immigration officials have declined to discuss the reasons why the men were detained.

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One of NSW's 'worst crime weeks' - 10 shot

A MAN is shot in the face, four are gunned down on a Sydney street, and a young man on a date is kneecapped by night's end.

Within a few hours, the number of people shot in NSW jumped to 10 in just five days, making it one of the "worst crime weeks" a senior policeman can remember.

Acting Assistant Commissioner Arthur Katsogiannis said on Saturday one of the shootings had sparked fears of violent reprisals.

Four men, aged between 20 and 25, were sprayed with bullets outside a western Sydney property just after 8pm (AEST) on Friday.

About 15 bullet holes were found in a garage door at the Smithfield crime scene.

Mr Katsogiannis said the incident "relates to a conflict between groups which are known to police" and could lead to payback.

"Certainly, we're concerned about retaliations," he told reporters.

Police were investigating whether the incident was linked to another shooting nearby on April 22, Mr Katsogiannis said, but it's not believed to be bikie-related.

"It's certainly one of the worst crime weeks we've had on record, it's very, very unfortunate in that respect," he added.

"Maybe it's the full moon, I don't know."

The Smithfield shooting came hours after a man was shot in the face at a beachfront hotel on the central coast.

Police said the 28-year-old man was shot at a hotel on The Esplanade at Ettalong Beach - described on a NSW tourism website as a "safe family favourite" - on Friday afternoon.

Detectives spoke with the injured man at Sydney's Royal North Shore Hospital, where he underwent surgery on Saturday, but said he was not cooperating with the investigation.

On the other side of the city, a 21-year-old was undergoing surgery on Saturday after he was shot in the knee while walking with his girlfriend in Burwood on Friday evening.

He told police he'd been shot after objecting to remarks made to his 19-year-old girlfriend by a group of men.

The violence has prompted criticism from NSW Opposition Leader John Robertson, who told reporters the government needed to act faster on anti-gang laws.

"NSW has no impediment other than the premier from outlawing gangs," Mr Robertson said on Saturday.

But a spokesman for Police Minister Mike Gallacher denied that.

"We've been doing great things on gun crime. (Labor) have done 16 years of nothing," he told AAP.

He said police in NSW enjoyed increased powers to move people on, tightened laws to tackle alcohol-based violence, and anti-consorting and anti-gang laws.

"Obviously a lot of work is going into putting together briefs of evidence. Cops are working around the clock on these laws," he said.

Amid the spate of shootings this week, police say they did catch a break on one case.

Detectives raiding a home in Sefton on Wednesday allegedly seized a Glock pistol used to shoot a female constable in the chest at Wetherill Park police station in 2006.

A man was charged over that crime but the weapon was never found.

The occupant of the Sefton home, a 27-year-old man arrested on Wednesday, will face court on various firearms offences, but police say he is not being charged in relation to the 2006 shooting.

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Vic Labor leads in Lyndhurst by-election

Martin Pakula is confident he can win the by-election in the Victorian state seat of Lyndhurst. Source: AAP

LABOR candidate Martin Pakula has won more than 40 per cent of the primary vote in early counting in Victoria's Lyndhurst by-election.

With almost one fifth of the total votes counted, Mr Pakula is in front with 40 per cent of first preferences, leading Family First's Stephen Nowland on 16 per cent and independent Hung Vo with 12 per cent.

Mr Pakula is the favourite to claim the outer south-eastern Melbourne seat that includes Springvale, Noble Park and Keysborough as well as Dandenong South and Hampton Park.

Former shadow treasurer Tim Holding triggered the by-election when he resigned in February. He held the seat by 13.9 per cent.

The coalition is not represented in the field of eight candidates.

Victory for Mr Pakula would leave the Victorian parliament on a knife edge, with Labor having 43 seats, to the coalition's 44, including the speaker.

It means the government would require the support of independent MP Geoff Shaw to pass legislation opposed by Labor.

The former Liberal MP is under police investigation for misconduct in public office.

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Myanmar hails EU lifting of sanctions

The EU has agreed to lift the last of the bloc's economic and individual sanctions against Myanmar. Source: AAP

MYANMAR has hailed a European Union decision lifting political and economic sanctions against the former pariah state.

Senior Myanmar diplomat Aung Lynn told reporters at an Association of Southeast Asian Nations conference in Brunei's capital, Bandar Seri Begawan, that the international community can expect more reforms.

"This is a very good beginning," he told reporters on Tuesday, adding that Myanmar (formerly known as Burma) recognises the still enormous work ahead for the country, one of Southeast Asia's least-developed.

Myanmar would continue to work with the EU, he said.

The 27-nation bloc lifted all sanctions except those against the sale of arms and equipment that can be used for internal repression.

The economic sanctions were suspended last April for one year after Myanmar's military rulers handed over power to a civilian government.

The measures had targeted more than 800 companies and nearly 500 people, and included the suspension of some development aid.

EU officials say the sanctions' permanent abolition will encourage firms and development organisations from the bloc - the world's largest economy - to strengthen ties with Myanmar.

"We know that much remains to be done, on human rights, on democracy, fighting poverty and achieving lasting peace. We don't underestimate the challenges", said Catherine Ashton, the EU's foreign policy chief.

Aung Lynn said Myanmar was looking forward to assuming the chairmanship of ASEAN for the first time next year, and would show the world how serious his country is about reform.

Myanmar declined the chairmanship in 2006 amid threats by Western governments to boycott ASEAN events due to Myanmar's then extremely poor human rights record.

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Qualified nod for Woodside dividend

MOODY'S Investors Service says Woodside Petroleum's special dividend and increase in its targeted dividend payout ratio is credit negative but can be accommodated within its existing credit rating and stable outlook.

"Woodside's financial profile has been strengthened due to the increased cash flow generation following the start up of the Pluto LNG project, combined with Moody's expectation for lower than previously projected capital expenditures over the next several years", said Moody's analyst Matthew Moore.

"As such, the announced shareholder friendly initiatives are manageable, albeit they absorb most of the near-term cushion at the rating level (of Baa1)," he said in a statement.

Woodside will pay a special dividend of 63 US cents per share next month and target a dividend payout ratio of 80 per cent of underlying net profit.

The special dividend was announced after the oil and gas company recently shelved its controversial $45 billion Browse gas plant and ruled out a near-term expansion of its flagship Pluto project.

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NSW police officer caught drink driving

A NSW police officer has been suspended after he was caught drink driving, police say.

The officer, 48, was arrested on Sunday after he returned a high range reading of 0.173 during a breath-test at Tweed Heads, police said.

Police suspended the man's drivers licence and he will appear in Tweed Heads Local Court for driving with a high-range prescribed concentration of alcohol and other driving offences.

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Iran denies link with Canada terror plot

Canadian police say they have arrested two people over an al-Qaeda-supported plot to derail a train. Source: AAP

IRAN is denying any link with two suspects charged with plotting a terrorist attack against a Canadian passenger train.

Canadian authorities claim the suspects - 30-year-old Chiheb Esseghaier and 35-year-old Raed Jaser, - had "direction and guidance" from al-Qaeda members in Iran, though there was no allegation the planned attacks were state-sponsored.

Esseghaier is believed to be Tunisian and Jaser is from the United Arab Emirates.

Some al-Qaeda members were allowed to stay in Iran after fleeing Afghanistan but were under tight controls.

Iran's Foreign Ministry spokesman Ramin Mehmanparast told reporters on Tuesday that there is "no firm evidence" of any Iranian involvement, and groups such as al-Qaeda had "no compatibility with Iran in both political and ideological fields".

He called the Canadian claims part of hostile policies against Tehran.

Esseghaier and Raed Jaser were allegedly planning to carry out an attack on a Via Rail passenger train, the Royal Canadian Mounted Police (RCMP) told a news conference.

A bail hearing was set for Tuesday.

"Today's arrests demonstrate that terrorism continues to be a real threat to Canada," Public Safety Minister Vic Toews warned.

Charges against the two include conspiring to carry out an attack and conspiring with a terrorist group to murder persons, though very few details about the plot were revealed.

Assistant RCMP Commissioner James Malizia told reporters the suspects "were receiving support from al-Qaeda elements located in Iran" but added: "There's no indication that these attacks were state-sponsored."

Asked to describe the kind of support offered, he replied: "Direction and guidance."

Malizia said the suspects were "not Canadian citizens" but declined to reveal their nationalities. One of the two men had lived in Montreal for several years, he added, without saying which one.

The suspects' plans were "not based on their ethnic origins but on an ideology," police said.

RCMP Chief Superintendent Jennifer Strachan said the duo - who had been under surveillance since last August - planned "to derail a passenger train" in the Toronto area.

"We are alleging these individuals took steps and conducted activities to initiate a terrorist attack. They watched trains and railways in the Greater Toronto area," Strachan added.

A Toronto lawyer said his client, a local imam, first alerted authorities about one of the suspects, who the imam had noticed trying to spread extremist propaganda to youths within the community, according to a report in local newspaper the Globe and Mail.

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Five killed in another shooting in US

GUNFIRE erupted at an apartment complex in a city south of Seattle and five people were shot to death, including a suspect who was shot by arriving officers, police say.

Officers responding to an emergency call at 9.30pm on Sunday (1430 Monday AEST) at the apartments in Federal Way found two injured men on the ground in a parking lot.

"When we arrived, there was a lot of gunfire already being fired and multiple calls, 911 calls of gunfire," said Federal Way police spokeswoman Cathy Schrock on Monday.

One of the men reached for a gun as police moved in to assist the two on the ground, she said.

At that point, other officers opened fire. The suspect died, but police said it wasn't immediately clear if it was from their gunfire.

The other man on the ground and a third man in the parking lot were found dead.

Police found a fourth man dead in one apartment and a slain woman in another unit.

Schrock said police were trying to determine if the woman was accidentally hit by gunfire.

There was no immediate word what set off the shooting.

"We're gonna continue to go door to door in hopes that we can find some additional witnesses, and hopefully we won't be finding any more victims," Schrock said.

After police flooded the scene and carried out searches of the area, authorities said they did not think another shooter was on the loose.

There were no reports of any officers being injured.

Federal Way is about 30km south of Seattle.

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Victims should go to police: churches

A culture of ignoring children helped child sex abuse go undetected, the Anglican Church says. Source: AAP

TWO of Australia's largest churches say it's up to the people who were sexually abused as children to go to the police.

The Anglican and Uniting churches in Victoria have together paid more than $2.25 million in compensation to victims over the past 10 to 15 years but have only referred a small number of allegations to authorities, a Victorian inquiry has heard.

Melbourne's Anglican Archbishop Dr Philip Freier says a culture of disbelieving children who complained of sex abuse and an unwillingness to face up to difficult and shameful things had helped the crime go undetected.

"As you look backwards you can see broadly as a culture we've not readily listened to children when they've made complaints," Dr Freier told the parliamentary inquiry on Monday.

"There have been opportunities for people who wanted to breach the trust of children to do that, and often for children's accounts of that trust being broken, being disbelieved.

"Some were even punished for having raised a question about the conduct of an adult."

He said this was the case for many community organisations not just churches.

Clergy have been responsible for most of the 46 incidents where a child sex abuse complaint has been made to the Anglican Diocese of Melbourne since the 1950s, the inquiry heard.

The church has paid out $268,000 to 10 victims since 2003, but only reported 12 of the 46 complaints to police.

The Uniting Church, which has $2 million in compensation since 1998, said "very few" of the 63 victims in the synod of Victoria and Tasmania had their cases referred to police.

Both churches said they did this to spare the victim further trauma.

Dr Freier said in the cases of historic abuse the church encouraged people to work with a solicitor as they didn't want to risk "revictimising" the complainant.

It's policy to report current allegations.

The Uniting Church synod's legal adviser Philip Battye said it was up to complainants to go to police if they wanted.

"Numbers of care leavers don't want the police to be involved," he said of people who had left children's homes operated by the church.

The church has no records before 1998 of child sex abuse complainants seeking compensation but acknowledged abuse had probably occurred and poor record keeping was to blame for the lack of information.

Mr Battye said it was "theoretically possible" that some alleged perpetrators were still involved with the church, potentially dealing with children.

"I can't say I'm totally confident that they're not but these complaints do go back many years," Mr Battye said.

"We are talking about 30-plus years ago."

The Uniting Church defended legal claims of sexual abuse against its members by invoking the statute of limitations, he said.

"If there are legal proceedings then the church will plead the limitation defence, because it's open to the church to do so," he said.

He said most of the perpetrators were not clergy or employees of the church and were, for example, a spouse of a 'cottage parent' looking after children in the homes.

Victorian and Tasmanian synod general-secretary Reverend Mark Lawrence said the Uniting Church in Australia had apologised unreservedly for any harm that occurred to children while in its care.

"The church continues to offer personal apologies to those who seek them."

Dr Freier said he wished he could undo the harm that had been done.

"It is unfortunate that we cannot change the past, I wish I could - but I give a real and genuine commitment to enhance the processes and culture of our organisation," he said.

"The abuse of children has no place in our society."

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Fake bus driver 'a misunderstanding'

REPORTS of a man posing as a bus driver and picking up students on the Gold Coast have turned out to be a big misunderstanding.

The alarm was raised on Monday morning by a concerned parent who told police her child feared something was amiss.

The driver didn't seem to know where he was going, and wasn't collecting fares from the students he picked up a number of stops in the Coombabah area.

It turned out that the driver was new, unfamiliar with his route, and didn't know how to work the ticketing machine properly.

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Asian markets mostly up

ASIAN markets mostly climbed on Monday, with Tokyo surging as the US dollar pushes back towards the 100 yen mark after the G20 cautiously endorsed the Bank of Japan's huge stimulus measures.

Chinese shares dipped, however, as insurers suffered a sell-off after an earthquake struck Sichuan province, leaving more than 200 dead or missing and destroying villages.

Tokyo jumped 1.89 per cent, or 251.89 points, to 13,568.37, while Seoul was up 1.03 per cent, or 19.56 points, at 1,926.31. Sydney rose 0.70 per cent, or 34.7 points, to 4,966.6.

Hong Kong added 0.14 per cent, or 30.80 points, to 22,044.37 but Shanghai was 0.11 per cent lower, shedding 2.47 points to 2,242.17.

The yen added to gains made in New York on Friday after the Group of 20 economic powers agreed that Japan's huge monetary easing measures unveiled this month were necessary to boost the country's stagnant economy.

In a statement following their meeting in Washington, G20 finance chiefs said the policy actions "are intended to stop deflation and support domestic demand".

Many countries, including the United States, have expressed concern that Japan could be deliberately trying to force the yen lower to boost exports and cut imports via "competitive devaluation".

But the G20, which includes the United States and Japan, called for more efforts to stimulate "strong, sustainable and balanced" growth globally, and took note of Japan's efforts towards that.

The US dollar jumped in New York to 99.52 yen on Friday, from 98.23 yen the previous day.

In afternoon Asian trade it stood at 99.74 yen. The greenback is expected soon to break the 100 yen barrier, a level it has not seen since April 2009.

The euro fetched $US1.3042 and 130.05 yen, against $US1.3057 and 129.94 yen.

"The G20 effectively gave the green light for further yen weakness by supporting the aggressive easing by the Bank of Japan," National Australia Bank said in a note.

"However, the G20 did add that it would like to see Japan also detail the structural reforms it can take to further boost growth."

On Wall Street, the Dow ended flat, the S&P 500 jumped 0.88 per cent and the Nasdaq added 1.25 per cent.

In Shanghai, insurance firms weighed on the market after Saturday's quake, which flattened thousands of houses.

Ping An and China Life were among the losers, although construction companies were up slightly on speculation of short-term construction work.

Oil prices were mixed. New York's main contract, light sweet crude for delivery in May, added 39 cents to $US88.40 a barrel in the afternoon and Brent North Sea crude for June delivery fell 15 cents to $US99.50.

An ounce of gold fetched $US1,420.73 at 0800 GMT, compared with $US1,414.20 late Friday.

In other markets:

-- Taipei added 0.50 per cent, or 39.58 points, to 7,970.38.

-- Manila surged 2.35 per cent, or 163.38 points, to 7,120.48.

-- Wellington advanced 0.88 per cent, or 39.16 points, to 4,438.66.

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China criticises US on human rights record

CHINA has slammed the human rights record of the United States in response to Washington's report on rights around the world, saying that US military operations have infringed on rights abroad and that political donations at home have thwarted the country's democracy.

The report released on Sunday in China - which defines human rights primarily in terms of improving living conditions for its 1.3 billion people- also cited gun violence in the US among its examples of human rights violations, saying it was a serious threat to the lives and safety of America's citizens.

The Human Rights Record of the United States in 2012 said the US government continues to strengthen the monitoring of its people and that political donations to election campaigns have undue influence on US policy.

"American citizens do not enjoy a genuinely equal right to vote," the report said, citing a decreased turnout in the 2012 presidential election and a voting rate of 57.5 per cent.

The report from the information office of the State Council, or China's Cabinet, which mostly cited media reports, said there was serious sex, racial and religious discrimination in the US and that the country had seriously infringed on the human rights of other nations through its military operations in Afghanistan, Pakistan and Yemen.

The US's annual global human rights report issued Friday by the State Department said China had imposed new registration requirements to prevent groups from emerging that might challenge government authority. It said Chinese government efforts to silence and intimidate political activists and public interest lawyers continued to increase, and that authorities use extralegal measures such as enforced disappearance to prevent the public voicing of independent opinions.

It also said there was discrimination against women, minorities and people with disabilities, and people trafficking, the use of forced labour, forced sterilisation and widespread corruption.

China's authoritarian government maintains strict controls over free speech, religion and political activity - restrictions that the US considers human rights violations.

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Hotelier stuck in a lift for four days

A HOTELIER says skills learned on a military survival course allowed him to survive four days trapped in the lift of his Austrian hotel.

A friend delivering bread eventually alerted rescue services on Friday after noticing post piled up outside the hotel in Bad Gastein near Salzburg.

The 58-year-old man had forgotten his mobile phone on his desk. His repeated desperate cries for help went unheeded and attempts to escape through the lift roof failed.

The Swedish-born man is now "in good health, telling officers that a survival course with the Swedish military had set him in good stead," police said.

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AG wants Racing Queensland investigation

QUEENSLAND'S attorney-general wants a parliamentary committee to investigate how the former Labor-aligned Racing Queensland board approved projects, and if anyone should face criminal charges.

A forensic audit by accountancy firm Deloitte, commissioned by the government, found that $150 million worth of contracts were awarded to engineering firm Contour Consulting Engineers without first going to tender, News Limited reports.

About $60 million worth of work was undertaken before the Newman government froze the program, $20 million of which was approved by the Bligh government before the 2012 state election.

Attorney-General Jarrod Bleijie says the report shows an obscure procurement process.

He'll ask cabinet on Monday to set up an investigation into the board's procurement processes, favouring an open parliamentary committee inquiry.

He'd want the inquiry to have the power to impel witnesses and believes current deputy opposition leader and former racing minister Tim Mulherin and Labor heavyweight and former RQ board member Bill Ludwig should give evidence.

Mr Bleijie wants to know who approved the payments and if it went through cabinet.

"Or did Bill Ludwig get on the phone to his Labor mates and say we need the money and got it approved?" he told AAP.

"If it shows that there is any criminality that has occurred, then we will then have the options to follow through."

Mr Bleijie insists an inquiry isn't throwing good money after bad.

Late last year, former RQ chairman Bob Bentley said everything he and his board did was "above board" and tenders were not called because Contour was a preferred contractor doing specialist work, News Limited reports.

Comment is being sought from Mr Mulherin.

Mr Mulherin says as minister he properly fulfilled all of his responsibilities.

He described the potential inquiry as a diversion, and accused Mr Bleijie of making political and prejudicial comments.

"Every time (the government) is on the ropes it hits the diversion button," he said.

"It shows a government obsessed with fruitless attacks on past governments and with no plans of its own for the state's future."

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Federal, state govts urged to cut spending

Treasurer Wayne Swan has revealed a $7.5 billion hit to the national budget. Source: AAP

FEDERAL and state governments are being urged to live within their means and make more aggressive cuts in public spending.

In a report released on Sunday, the Grattan Institute warned Australia must prepare for more difficult economic times ahead by reducing its overall budget deficit.

The think tank says Australia faces a "significant risk" of posting deficits of around four per cent of gross domestic product (GDP) over the next 10 years.

Averting them would require governments to find savings and tax increases worth $60 billion a year.

"This alarming task is not impossible, but it will require tougher choices than those made over the last decade," the report said.

"To be sustainable, current budgets need to be in surplus."

The institute acknowledged that clawing back a deficit of four per cent of GDP required that everyone experienced some "budget pain".

But it was vital to cut back on spending, with "far more negative than positive forces" on the economic horizon.

"This will be politically difficult, but the alternative is unsustainable budget deficits that will be even more painful to reverse in the future," the report said.

The institute warned company and carbon tax revenues were likely to be one per cent of GDP - or $15 billion a year - less than current forecasts.

"Current revenues are inflated by the mining boom and Australia's high terms of trade.

"If, as many predict, minerals prices fall, government revenues will fall by another one per cent of GDP."

In the federal government's financial statement for February 2013, released last week, there was an underlying cash deficit of $23.646 billion, higher than $17.993 billion forecast in the mid-year budget update released in October.

The difference of $5.713 billion was mainly due to lower tax revenue and higher welfare payments, the government says.

A spokesman for Treasurer Wayne Swan said the government was committed to making the budget sustainable over the long term.

He said it had "demonstrated this again recently with the announcement of responsible savings to help pay for better funding for schools".

He said without such measures, the budget position in 2020-21 would be $250 billion worse off.

"This includes tackling unsustainable spending on health - which this report identifies as a significant issue - through measures such as means testing the private health insurance rebate and cutting the millionaires' dental scheme," the spokesman said.

Mr Swan on Sunday revealed that the high dollar and lower terms of trade have resulted in a $7.5 billion hit to revenue in the federal budget.

He said the same factors would also impact forward estimates.

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