Australia's budget is set to plunge into its biggest deficit since World War Two this year as the coronavirus crisis knocks the country into its first recession in three decades and forces policymakers to roll out hundreds of billions of dollars in stimulus, Reuters reported.

Although Australia has managed the pandemic better than most developed nations, the shattering global impact of the outbreak has left its trade-exposed A$2 trillion ($1.43 trillion) economy grappling with skyrocketing unemployment as many businesses sink in red ink.

In a special announcement, Treasurer Josh Frydenberg said the budget swung into a massive deficit of A$85.8 billion ($61.3 billion) in the year-ended June 2020 compared with an earlier forecast for a surplus.