'A budget for every Australian': Budget forecasts $9.3 billion surplus

A surplus of this size in 2023-24, while smaller than the $13.4 billion surplus tipped last month, would enable the Albanese government to lay claim to the first back-to-back surpluses in almost two decades.

"Another surplus is a powerful demonstration of Labor's responsible economic management, which makes room for cost-of-living relief and investments in the future," Dr Chalmers said.

"The forecasted surplus has come on top, not at the expense, of helping those doing it tough."

Prime Minister Anthony Albanese told the Labor Party caucus on Monday the budget would "make sure, as we committed to, that no one be left behind".

"It is a Labor budget through and through," he said.

Finance Minister Katy Gallagher said the government's "budget discipline" would enable it to deliver cost-of-living relief for those doing it tough.

"We've found more than $77 billion in savings and reprioritisations since coming to office, redirecting this spending towards the services that Australians rely upon," Senator Gallagher said.

"We understand there's still pressures on the Budget, including spending on the NDIS, aged care, hospitals, Medicare and debt interest.

"That's why we've put a premium on responsible economic management that strikes the right balance between strengthening the Budget and funding our priorities."

The budget papers are expected to show the heavy spending in the two years from 2026-27, when the budget will reflect the growing costs of programs including defence, aged care and the NDIS.

Shadow Treasurer Angus Taylor will use his budget reply speech to attack the government over its spending at a time when inflation is yet to be tamed and the economy is teetering.

With the revamped stage three tax cuts expected to cost $243 billion over a decade and a raft of spending announced in recent weeks, critics warn gross debt will hit $1 trillion.

But the Treasurer has crafted a budget that will forecast real spending growth of 1.4 per cent [adjusted for prices] over the period from when the Albanese government was elected in 2022, until 2027-28.

This works out to be about a third of the rate of the former Coalition government - which averaged 4.1 per cent while steering the nation through a global pandemic - and below half the 30-year average of 3.2 per cent.

"Despite the substantial progress we've made, spending pressures continue to intensify and there's more work to do to clean up the mess left behind by the Coalition," Dr Chalmers said.

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"When we came to office, inflation had a six in front of it, and now it has a three in front of it. We're not taking lectures from the same Liberal and National clown show which left us higher and rising inflation, more debt, and much bigger deficits."

The Morrison government's last budget forecast a deficit of $56.5 billion in 2023-24. Dr Chalmers will use this figure to trumpet a forecast $200 billion stronger budget bottom line over the six years to 2027-28.

Mr Albanese said on Monday that Dr Chalmers would hand down "a budget for every Australian".

"We live in uncertain economic times. But what we've ensured is that we deal with some of those pressures, whilst of course, making sure we have our eye on the future," he said.

"The decisions that we make this decade will set Australia up for the good decades ahead."