The Australian government will make true of its pledge to realise a budget surplus by 2013, notwithstanding the challenges this year that economists said could plunge key economies into recession, specifically in Europe.

According to the Sydney Morning Herald, Prime Minister Julia Gillard is set to present her general economic policy before the Australia-Israel Chamber of Commerce on Wednesday, the meat of which will emphasise the Labor-led government's economic agenda.

In a prepared speech, Ms Gillard will outline her government's policy measures, centred on planned investments and economic reforms, which she believes will create a buffer for the Australian economy to weather the difficulties projected by many economists this year.

Ms Gillard will reiterate the general health of the economy, its current status mostly propelled by the ongoing mining boom, while at the same time highlight the initiatives that the government strove to pass through the Parliament last year.

Amidst spirited opposition from various quarters, including the business community, Ms Gillard had successfully manoeuvred for the passage of the controversial legislations - the minerals resource rent tax and the carbon pricing.

Both of which takes effect July 1 this year, coinciding with the full roll out of the billion-dollar National Broadband Network, which the Gillard government said will deliver high-speed internet access to Australians across the nation.

That sophisticated infrastructure, Ms Gillard had declared, will spawn economic growth that future generations will benefit from.

And that end will be the centrepiece of Ms Gillard's speech, the SMH wrote.

"Our people do not want to be forced to choose between mining and the rest. Nor do they want to choose between a strong future for manufacturing and a strong economy as a whole," the paper said the Prime Minister will say.

Also, she is expected to debunk claims made by Opposition Leader Tony Abbott on Tuesday, telling the National Press Club that the Labor-led government has been mismanaging the domestic economy through complacency and laziness.

Abbott also confirmed that the Coalition would hold off on plans to push for a no-confidence motion against Ms Gillard over the Australia Day incident that reports said was sparked by a leak provided by a former aide of the Prime Minister.

The Liberal leader, however, insisted that it would be a different story once the Fair Work Australia probe on MP Craig Thomson pointed to wrongdoings that also involved Ms Gillard.

Stressing that economy and not politics is the priority of the government, Ms Gillard is set to lay down the solid achievements of her government and let the records speak.

"Today, interest rates and taxes are lower than when we came into office and we have created hundreds of thousands of jobs," Ms Gillard's speech will say according to SMH.

In line with the economic reforms espoused by the Labor government, Ms Gillard will also defend the assistance extended by federal authorities to ailing sectors like the car industry, which was questioned by Abbott.

"Smart and sustainable co-operation between government and industry is the model which has been pursued by reformist Labor governments in Australia for decades," the Prime Minister's speech will argue.