Economic growth numbers point to more deterioration in the budget, federal Treasurer Joe Hockey has warned.
The national accounts released on Wednesday show the economy grew by just 0.6 per cent in the September quarter, less than economists had expected.
Annual growth slipped to 2.3 per cent and well below trend growth, about 3.25 per cent.
Mr Hockey said the economy the government inherited from Labor was "stuck in second gear" and growth wasn't "good enough to be able to deliver the jobs that people want".
"Combined with other economic data, it is clear that the nominal growth forecasts in the PEFO will not be reached," he told reporters in Canberra, referring to the pre-election economic fiscal outlook released by Treasury in August.
"This points towards a further deterioration in the budget bottom line."
Wednesday's data will feed into Treasury's updated forecasts for the economy, budget and debt, which will be released in the midyear economic and fiscal outlook (MYEFO) due before Christmas.
Shadow treasurer Chris Bowen agreed the MYEFO was likely to show a deterioration in the budget, but blamed this in large part on decisions taken by Mr Hockey since the election.
"The decision to blow out this year's deficit by transferring almost $9 billion to the Reserve Bank, for example," Mr Bowen told the National Press Club in Canberra.
"I do accept the terms of trade and economic activity also of course have an impact."
But he said they underlined the need for the treasurer to get the budget update out soon.
Mr Hockey said the government had a repair job to do, as well as an economic plan to implement, warning his political opponents not to oppose the repeal of either the carbon or mining taxes and $18 billion in coalition election promises.
"Now is not the time to play silly games in relation to the budget, because these figures clearly illustrate the fact that budget has deteriorated significantly," he said.
However, he said budget deterioration would not necessarily result in deep budget cuts.
"We're not obsessed with cuts. We're obsessed with getting the budget back into good shape, into robust shape.
"We're obsessed with growth and job creation.
He said the government had to find ways to "fill the hole" left by the slowing in resource investment and stimulate the non-mining side of the economy, adding that infrastructure investment would be a major way to do it.
But he did not rule out cutting public sector spending, saying Australians would find out his plans in the MYEFO.
