Cancer sufferers will have access to new generation drugs as part of the federal government's pledge of $1.3 billion for new medicines.
Health Minister Sussan Ley on Saturday announced the four-year funding for drugs approved for the pharmaceutical benefits scheme.
She also confirmed the government would push ahead with plans for a $20 billion medical research fund, despite scrapping the $7 co-payment that was expected to inject most of the cash.
Ms Ley expects the $20 billion to be reached by 2020 and Prime Minister Tony Abbott appears to be looking to the pharmaceutical supply chain for the bulk of the funds.
Labor welcomed the addition of new medicines to the PBS but urged the government to ditch a four-year freeze on Medicare rebates that would rip $1 billion from general practice.
Tuesday's budget papers will also include an extra $333 million in federal support as part of an expanded package of measures designed to stimulate local economies.
Mr Abbott announced the drought assistance package on Saturday in Longreach at the tail-end of a pre-budget blitz in which he will visit every state and territory.
The package includes $35 million to boost economic activity in towns and regions badly hit by drought.
Another $25 million will be targeted at pest and weed management programs in drought-hit areas, while $20 million will finance mental health and counselling services for more struggling farm families.
Most of the funds will go towards the continued provision of cheap loans to debt-laden farmers, with $250 million to be set aside for the drought concessional loan scheme in 2015-16.
Coalition MPs and the rural sector have been strongly lobbying Mr Abbott to provide more drought relief, as well as to release the northern Australia white paper as a long-term confidence booster.
Earlier, Deputy Prime Minister Warren Truss announced an extra $40 million to upgrade airstrips and boost air services for remote communities that rely on aircraft to deliver food and supplies.
In one of the final major announcements expected before Tuesday's budget, the government will reveal on Sunday its long-awaited childcare package, coinciding with Mother's Day.
Social Services Minister Scott Morrison has already announced a nannies subsidy and an $850 million package targeting disadvantaged children.
The new early childhood safety net will include extra subsidies for families and communities to set up childcare facilities and a program to attract staff to work at them.
The childcare package will be tied to family tax benefit cuts, a measure that stalled in the Senate.
Mr Abbott is confident it will be well received.
Opposition agriculture spokesman Joel Fitzgibbon labelled the drought package a "cruel hoax" that was a reannouncement of a failed policy.
He claims the $250 million for concessional loans is already announced money not spent because farmers either can't access the loans or believe they're unhelpful.
"Sadly for desperate drought-affected families, history looks like it is repeating," he said.
However, Mr Fitzgibbon did welcome funds for mental health, rural counselling and pest and weed management but wants more detail.
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