Treasurer Josh Frydenberg is forecasting a slightly smaller budget deficit for the 2021/22 financial year while predicting strong economic recovery and a sharp fall in the unemployment rates. He is also predicting in his mid-year budget review wages growth of three percent in 2023/24, a rate not seen since the coalition came to power in 2013. The treasurer has also warned state governments not to collapse in concern over the Omicron variant of the coronavirus. “We need to learn to live with the virus. There will be more variants, but there is no need to panic. There is no need to overreact, and the states need to keep calm and carry on.” Frydenberg said on Sky News on Thursday. The budget deficit for 2021/22 is now forecast at 99.2 billion in 2021/22 in the mid-year economic and fiscal outlook (MYEFO); a 7.4 billion improvement since the 106.6 billion predictions made …