This year's budget is being touted as an inflation fighter that will still contain a healthy surplus and some savings for taxpayers.
The Business Council has challenged the Rudd government to cut spending by more than 30 billion dollars over the next three years to bring inflation under control.
Treasurer Wayne Swan has told the ABC it's a big challenge considering what's been left behind.
“The reckless spending of the past few years has forced up inflation and it has been left on us to rein it in - and rein it in we shall,” Mr Swan said.
But Mr Swan would not be drawn on how the government would cut spending.