by Laura Tingle

Treasurer Scott Morrison says next month's federal budget is designed to help more Australians, especially young people, to get into work and off welfare and will invest in education, health and social services, "in a fairer and more sustainable way"

Outlining the aims of the budget to a closed dinner of the Business Council of Australia on Wednesday night, Mr Morrison said the budget would achieve these things in a manner " that taxpayers can afford – rather than higher taxes and higher debt".

"This is the Budget that the Australian economy needs now", he said. "It doesn't matter when the election is held, this is the Budget that we need to deliver. It will be a budget focussed on clearing a path for jobs and growth."

The Treasurer's comments suggesting the government will invest in education, health and social services come despite the government appearing to be at an impasse over what it does about huge and politically contentious spending cuts to health and education outlined in the 2014 budget. Twenty per cent cuts to university funding remain particularly contentious.

Mr Morrison said the May budget would show the Coalition "will continue to live within our means".

"Households are doing it, families are doing, businesses are doing it - so must government", he said

By contrast "Labor [will] have $7 billion in higher taxes and just one $1 billion in savings on spending", he said to fund new spending promises to fund $60 billion in new spending.

"It just doesn't add up", he said.

The Treasurer suggested that forecasts contained in the mid year review would continue to be met. These forecasts, released late last year, showed that spending as a share of the economy is projected to fall over the next four years to 25.3% and the deficit reduced from 2.4% last year to 0.7%.

"We are achieving this by saving more than we are spending and we are reducing taxes more than we are increasing taxes". he said.

"This is the discipline needed to remain committed to growth and maintain the consolidation of our budget position to protect us against the economic shocks and uncertainties that can threaten our success."

In addition to helping people get jobs and delivering health and education, these changes would " protect our national security, keep Australians safe and make our communities stronger".

"The conditions are in place for the next phase of Australia's transition, namely businesses in the non-resources sector increasing their investment, while our resources sector continue into its production phase, growing its market share in foreign markets", he said.

"We know that growing the size of our economy is how you create jobs, opportunity and deliver greater living standards for Australians. It's how you help Australians earn more.

"You don't get this by increasing the burden on hard-working Australians and business owners with higher taxes as Labor eagerly wish to do, and  you don't get this by living beyond your means as Labor will again if given the chance."

The Treasurer gave an upbeat assessment of the economy, saying business conditions are strong, "and growing stronger".

"We're seeing particular strength from businesses in financial services, in business services, in property and construction.We continue to benefit from growing demand for our natural resources".

He said it was particularly exciting for Australia "that the expanding parts of the Australian economy are also the expanding parts of the Chinese economy — or, to put it another way, we're in sync"."

That's something worth being upbeat about."

Mr Morrison acknowledged that the Business Council "took a different view on section 46" of the competition laws to the government.

"We had the conversation, with the BCA and many other stakeholders", he said. "We considered it; we did it carefully, and with respect for the views of all sides.

"The BCA has been involved throughout the consultation processes that came with the Harper Review and the Government wants that to continue.

"We're conscious of the needs of business, and the changes are designed to reduce the uncertainty associated with amending the law. So I encourage you be involved — to share your knowledge and expertise — as we progress the legislative changes."