The country's budget plan for the financial year 2012-2013 was not only configured to deliver a surplus but also to prepare the Australian economy for a likely disturbance of global fiscal settings this year.

Federal Treasurer Wayne Swan said on Saturday that the budget he presented on May 8 "budget takes a conservative view of Europe's economic outlook."

Mr Swan noted on his weekly economic advisory that the eurozone, as projected by economists, will continue to struggle in the current year with the likelihood of a 0.75 percent contraction of the region's economy.

The Deputy Prime Minister also conceded that Europe's gloomy economic outlook will impact on economies outside of the eurozone, admitting that "Australia is not immune from events in Europe."

"But it's important we don't lose sight of the fact that our economic credentials are among the strongest in the world: we have one of the lowest unemployment rates in the developed world, we have sturdy public finances with very low public debt," Mr Swan was reported by Bloomberg as saying on his weekend note.

As promised by Prime Minister Julia Gillard, Australia's new budget blueprint will cut expenditures of up to $40 billion in order to realise savings of about $1.5 billion, with healthy provisions of welfare payments to Australian households deemed by the government struggling under the present financial circumstances.

Ms Gillard said last week that while the global condition was generally alarming, Australians need not to worry that much as the domestic economy remains robust enough to withstand possible difficulties to descend in the remaining months of 2012.

The economy, the Prime Minister said, will be amply supported by an investment pipeline totalling to $450 billion, the great majority of which coming from the ongoing resources boom.

In his regular note, Mr Swan confirmed that the country currently rests on a solid ground that is characterised by "contained inflation (levels) ... and a huge pipeline of mining investment."

On top of those firm indicators, the Treasurer expressed confidence that "we have a budget returning to surplus next financial year ahead of every single major advanced economy."

However, Mr Swan said that Australia is aware of the fact that the unsettling situation in Europe could persist much longer than expected, with Germany's Finance Minister Wolfgang Schaeuble admitting earlier this month that the region's credit crunch could hamper growth efforts over the next two years.

Also, economists do not hide their fears that Europe's woes could spill over on other economic regions and possibly pull back the gains achieved earlier this year by key economies, specifically that of the United States'.

For Europe to finally recover its lost grounds, Mr Swan said that "determined, consistent and continuing action will be required by European policy makers to deal with the sovereign debt crisis, get their budgets back on a sustainable footing, and restore growth."