Budget deficit will beat market views

Treasurer Joe Hockey says the budget deficit will come in under $41 billion and market expectations.

Treasurer Joe Hockey says the budget deficit will come in under $41 billion and market expectations. (AAP)

Treasurer Joe Hockey's second budget will report a deficit lower than the $41 billion predicted by financial markets.

"We're going to beat that and we're going to beat it every year," Mr Hockey told reporters outside Parliament House on Tuesday morning.

He said the budget will be focused on strengthening the economy and giving Australians the opportunity to get ahead.

The government had been forced to write off $90 billion of expected revenue, the treasurer said.

"Yet we are still on a credible trajectory back to surplus."

Mr Hockey said the success of his budget would be judged by whether voters saw it as responsible, measured and fair.