Australia will realise a modest budget surplus next year and enjoy at the same time a lifestyle that remains at par with major economies across the globe, Federal Treasurer Wayne Swan said on Tuesday.

Speaking to reporters in Canberra this morning, Mr Swan said that the Labor-led government will deliver to Australians tonight a 'battler's budget' that aims to sustain its support for the financially challenged and preservation or creation of more jobs.

The 2013-2013 national budget will carry provisions that would protect the existing living standards being enjoyed by many Australians amidst the unsettling realities that other economies have to deal with, the treasurer said.

"It makes sure we support jobs. It provides cost of living support for those under financial pressure. And it puts in place new initiatives for some of the most vulnerable in the community," Mr Swan said.

"In uncertain times, we live in one of the strongest economies in the developed world, but also one of the fairest communities," he added.

Apart from supporting Australian sectors that were deemed as not direct beneficiaries of the country's ongoing resources boom, Mr Swan noted too that as the surplus targeted in the upcoming budget gradually materialises, the country's central bank should find more room to operate on likely rate cuts to come following last week's 50-basis-point reduction.

Within the new budget, the Reserve Bank of Australia (RBA) will enjoy 'maximum flexibility' in performing it core function as one of the country's prime economic policy developer, the treasurer said.

"By coming back to surplus, we give the Reserve Bank maximum flexibility to cut interest rates should they decide to do so independently of the government," Mr Swan said.

But Opposition Treasury spokesman Joe Hockey labelled the Treasurer's budget blueprint as a big joke, insisting that "there's been at least a $20 billion deterioration in the budget."

Mr Hockey said the Labor government should not count on the Coalition to simply rubber-stamp on all the measures that Mr Swan will present onTuesday night, warning that "we will apply proper scrutiny of the budget."

Most likely, Mr Hockey offered, Prime Minister Julia Gillard will approve the imposition of higher taxes just so her government could deliver the surplus that she vowed to deliver by next year.

That scenario, however, will not become a reality as the Liberal frontbencher suggested that there would be an overhaul of the government come 2013, referring to the projected defeat of the Gillard government in the national election next year as consistently shown by surveys.

"Does anyone actually believe that Julia Gillard and Wayne Swan are going to be around to see this thing through?" Mr Hockey hinted in an interview with the Australian Associated Press (AAP) on Tuesday.

Also, the Australian Green Party, normally supportive of Ms Gillard, has expressed concerns that spending cuts included by the federal government in the budget could impact on important national services and hurt the economy.

Greens Senator Christine Milne is wondering how Mr Swan would realise savings of up to $40 billion without compromising on priority government initiatives such as infrastructure and health services.

"We want to raise money in order to have money to spend on things like high-speed rail," Senator Milne told AAP as she called on Mr Swan not to overlook the importance of consistent government investments on infrastructure projects.