Prime Minister Julia Gillard has ramped up efforts by her government to convince the Australian public that the 'Labor way' of managing the national economy would in the long-run prove beneficial to the greater majority.

Ahead of the Tuesday budget presentation, in which Ms Gillard would deliver the promised surplus of about $1.5 billion, the federal government has unleashed programmed tax grants that would shore up both Australian families and small business operators.

The benefits would come in the form of a pre-planned dental care packages amounting to $500 million and tax breaks of up to $300 million for small business establishments, the latter according to Federal Treasurer Wayne Swan would create more breathing room for struggling businesses starting July this year.

"For any businesses from the first of July that strike choppy water and want to have the certainty to be able to invest, they can carry that loss backward," Mr Swan said in a statement.

The upcoming aids, according to Ms Gillard, were in line with her government's unwavering commitment to realise sensible savings in the national budget for 2012-2013, which she described as the "traditional Labor fashion," of effectively managing the economy.

Mr Swan added that the Labor way means ensuring that all Australians would reap the benefits of a booming domestic economic environment, especially that of the resources sector, which has been fuelling up the country's steady expansion amidst the difficulties being by key global economies.

"Tuesday night's budget will show that the Australian economy walks tall in the global economy but support lower and middle income earners at home," the treasurer said on Monday while addressing reporters in Canberra.

He also highlighted a report by the Australian Financial Review, which came out also on Monday, in which Anoop Singh, chief economist for Asia by the International Monetary Fund (IMF), said Canberra's "tighter fiscal policy combined with an easier monetary stances represents an appropriate policy mix."

Mr Singh's words, according to the treasurer, represented "a ringing endorsement from the International Monetary Fund."

Mr Swan, however, failed to mention that the IMF economist also issued caution on the 'fair-go budget' that has become the focus of the Gillard government.

"Investment in the resource sector could be larger than expected, boosting growth and pushing up wages and inflation," Mr Singh wrote on the article carried by the AFR.

The IMF official also reiterated the earlier observation of many economists that the ongoing mining boom was so far limited on its scope as shown by the challenges currently faced by key Australia industries, specifically the manufacturing and retail sectors.

Many economists lamented too that with the national government so obsessed in pushing for a surplus, it could overlook the more important goal of providing a stable environment in the domestic setting.

According to ANZ chief executive Mike Smith, Ms Gillard cannot be faulted for making the budget surplus as the centrepiece of her economic blueprint, which he conceded as having a good vision on the part of the federal government.

Mr Smith reminded though that the local economy would be best served if Canberra could throw a blanket of security and stability in the whole economic setting instead of straining itself on a rigid surplus target, which economists said could slash as much as $40 billion in spending for government services.

"The issue is how you get there and over what time," the ANZ chief told The Herald Sun on Sunday.

HSBC chief economist Paul Bloxham has observed that the Labor-led government was attracting unnecessary fiscal pressures by orienting its policies on the surplus that it can deliver tomorrow.

"I think the larger part of the fiscal setting should be determined by where the economy is and by the automatic stabilisers in the economy," Mr Bloxham suggested in an interview with News.com.au.

Just to introduce fiscal savings that look good on the balancing sheet, "I don't think the Government should be making large discretionary changes," the HSBC analyst added.