The Morrison government will issue an unprecedented progress report on the budget, outlining the coronavirus pounding to the national economy and the huge outlay to deal with the pandemic.

The statement on 12 May the first day of parliaments return is being seen as a prelude to the federal and state governments easing restrictions on businesses.

But the statement, to be delivered by the treasurer, Josh Frydenberg, in the House of Representatives and finance minister, Mathias Cormann, in the Senate, will also use the magnitude of the economic crunch to underline that recovery will not be swift.

The near-term outlook depends critically on this ongoing success [in suppressing Covid-19] and our ability to gradually ease restrictions so people can return to work, the ministers said in a statement on Monday night.

It is reasonable to expect that the pace and scope of any easing in containment measures will become more clear in the period ahead while economic data on the current state of the economy will become more readily available.

The review of government finances before the 6 October budget will resemble a mid-year economic fiscal outlook (MYEFO) usually released in December, halfway through the financial year.

The government will be under pressure to nominate how it will pay for the $320bn in stimulus and safety-net schemes, representing 16.4% of annual economic output.

Labor is expected to support the decision to release a detailed statement.

Shadow finance minister, Katy Gallagher, warned on Friday the March monthly financial statement showed tax revenue was $4bn short of forecasts made less than four months ago.

With the budget not being held until October 2020 it is critically important that the government provide an economic update to the Australian people when the parliament returns in May, she said.

The ministers said the May statement would outline the impact of the coronavirus on the economy and the governments actions to date, to be reinforced by an update on the economic and fiscal outlook in June, following the release of the March quarter national accounts.

Those March quarter figures on economic growth could identify the start of a decline which might blend into a recession.

There are increasingly stark complaints from industry sectors that the business-led recovery the government wants is struggling to get under way.

Businesses are pressuring governments to reopen pubs, clubs and theatres before they are shut down for good.

They also want borders reopened.

Peak employer organisation the Australian Industry Group wants a first step to be the removal of restrictions on crossing state borders, imposed by governments in Queensland, Western Australia and Tasmania.

Welcome talk of restarting NZ-Australia air travel raises the obvious question of why cant we reopen the borders between our own states immediately and take down the inconsistent and overly-cautious cross-border barriers, the Ai Group chief executive, Innes Willox, said on Monday.

It should not be easier to get from Sydney to Wellington than it is to get from Coolangatta to Tweed Heads.

And when we eventually can holiday again, wouldnt it be better for our local economy to take a break in Broome or the Flinders Ranges rather than go skiing in Queenstown?

Business also wants relief from limits on who could take to the roads.

Willox said members of his organisation reported nervous staff fearing police stops and potentially huge fines.

He sad freight was moving reasonably well after a difficult start.

But many Ai Group members working across borders do so under threat of self-isolation orders and financial penalties for non-compliance ranging from $13,335 in Queensland to $62,800 in the Northern Territory, he said.

Borders should be reopened fully with the continued understanding and strong messaging that the community and business are expected to adhere to all health and social distancing requirements.

Such healthy practices have become second nature to most of us now and we should have confidence in the community to do the right thing without threat.

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Coronavirus hit to Australian economy to be outlined in budget progress report - The Guardian