An early return to surplus would push interest rates down and allow the government to invest more in welfare programs, says economist and former government adviser Stephen Koukoulas.
"Getting back to surplus ... means the government is starting to rebuild its savings, it's starting to decrease the size of government in the economy and ... preparing for the next economic shock, whenever that may come along," he says.
However, Mr Koukoulas didn't deny the political reasons behind the government's push for an early return to surplus following the global financial crisis.
"We're within 18 months from having the next election, and one of the issues in voters' minds is economic credibility," he says.
The fact that some voters still doubted the government's skills in handling the economy despite excellent reviews from Nobel-winning economist Josef Stiglitz, among others, was 'a misunderstanding,' Mr Koukoulas said.
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"I think at the end of the day the general electorate just want a government that's got control over its own finances and if that means returning to surplus a little earlier than would otherwise be desirable, well then that's fine," he said.
"There's more to life than just the budget," says Mr Koukoulas, taking aim at many of his colleagues who believe an early return to surplus could slow Australia's growth.
Interest rates and the Australian dollar have both fallen, giving the economy a boost, he pointed out.
"There are other policy levers."
Listen to the full interview with Stephen Koukoulas:
