It would be appropriate for the central bank to push down the cash rate at this time, according to Prime Minister Julia Gillard, stressing that in the present situation such move would "widespread benefits for households and business."

In a speech that she will deliver before the Chamber of Minerals and Energy of Western Australia and Western Australian Chamber of Commerce and Industry in Perth on Thursday, Ms Gillard is poised to take the stance that the Reserve Bank of Australia (RBA) can very well afford to reduce its benchmark overnight rate following months of keeping its level as 4.25 percent.

"There is plenty of room for the RBA to move further if need be," the Prime Minister will say on her speech.

And along with her pledge to deliver a surplus of about $1.5 billion by 2013 on the May 8 budget presentation by the Labor government, Ms Gillard is convinced that the RBA could comfortably manoeuvre for a rate cutback next month.

Such move will ease the pressures currently faced by sectors, specifically the manufacturing, retail and tourism industries, which have been bearing the brunt of the constantly rising Australian dollar, according to Ms Gillard.

"This is fully consistent with the Reserve Bank's charter obligations to best contribute to economic prosperity and full employment, as well as containing inflation," the Prime Minister's speech said.

Ms Gillard will also clarify that her quest to eliminate Australia's budget deficit was "not a commitment to never have a deficit."

"It's a commitment to ensure our budgets are in surplus, on average, over the medium-term - easing in the tough times and then moving to surplus as things improve," she will say in her speech.

Delivering a budget surplus, Ms Gillard added, "is not a political target but a potent economic tool ... and to all those calling for rate cuts, you should also be calling for a surplus - not opposing one."

The Prime Minister will deliver the message amidst intense calls from business leaders and union officials recently for federal authorities to seriously consider tweaking RBA's present mandate - to possibly make the central bank more adoptable to the needs of the hour.

In a statement he issued on Wednesday, Industry Funds Management chair Garry Weaven scored the RBA board for being short-sighted by basing most its decisions in the past years to control Australia's inflation.

"Consistently now, for many years, the Reserve has had far too much focus on inflation only and not enough on employment and economic prosperity generally, which is their requirement under the Act," The Courier-Mail reported Weaven as saying on Wednesday.

The calls, however, were brushed aside by federal authorities, with the Coalition accusing the government of resorting to political pressures instead of heeding the pleas of industry leaders and workers' representatives.

According to Liberal Senator Arthur Sinodinos, Ms Gillard's latest comments underlined her intents to bear down on the RBA board.

"I think she is trying to create an atmosphere where there is more political pressure on the bank to cut rates faster and harder than they might otherwise want to based on what might be in the budget," Senator Sinodinos told ABC Radio on Thursday.

"(The RBA) shouldn't be conned by the Prime Minister into thinking that she is going to deliver such a razzle-dazzle budget until they have seen it ... As far as the budget is concerned, they should look at what she's delivered rather than what she is promising," the opposition senator added.