The Australian government is set to end four years of public spending deficits and return to a budget surplus this year, as it looks to shore up support.
Duncan Kennedy on how Canberra balances its books
Treasurer Wayne Swan is due to announce deep cuts in spending, but also cash payments for the low-paid in his budget.
He said the surplus would allow the central bank to cut interest rates.
It comes with support for Prime Minister Julia Gillard and her minority government near record lows.
Mr Swan will deliver the budget to parliament at about 19:30 Canberra local time (09:30 GMT).
'Battler's budget'The budget for 2012-2013 is set to include cuts to Australia's military spending and other government departments.
The governing Labor party has said it is also aimed at supporting lower-income families.
"In many ways this is a battler's budget," said Mr Swan in Canberra on Tuesday, according to ABC News.
"It makes sure we support jobs, it provides cost-of-living support for those under financial pressure and it puts in place new initiatives for some of the most vulnerable in our community."
Although Australia's economy has weathered the global financial crisis better than most developed nations, Mr Swan said this surplus would strengthen it against shocks from future global economic uncertainty.
"When you look around the world, when you look at what's happening in Europe, you can see that Australia's economic fundamentals are strong," he said.
"Coming back to surplus is about making sure we help those people sitting around the kitchen table when they're figuring out how they will make ends meet."
But Opposition Leader Tony Abbott said bringing the budget to surplus was based on "fiddled figures", according to ABC News.
"The Treasurer has artificially moved spending out of next year into this year or into the year after, and he's artificially moved spending off-budget that should be on-budget, so this is a cooked books surplus," Mr Abbott said.
Some analysts have also questioned the need for a surplus, given the central bank moved last week to cut the cost of borrowing by 50 basis points and lowered the country's growth forecast.
A lower cost of borrowing, now at 3.75%, provides relief for mortgage holders facing high real estate prices.
Politics is playing a part in this move to a surplus as well. The BBC's Duncan Kennedy, in Sydney, says this is a budget that could determine Julia Gillard's political future, with elections due to be held in November 2013.
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