Former Liberal treasurer Peter Costello says last week's economic growth figures were good, but not good enough to fix the budget.
The national accounts showed the economy grew by 0.9 per cent in the September quarter for an annual rate of 2.5 per cent, a marked improvement on the previous three months.
But Mr Costello says it needs to grow above three per cent to get unemployment down and the budget back into some kind of balance.
"We have to really kick-start this economy and it's going to take considerable reform," Mr Costello told Network Ten on Sunday.
A Treasury briefing handed to Scott Morrison when he took over as treasurer from Joe Hockey in September says repairing the budget is "essential".
It says while many elements of the economic transition are unfolding as expected in the May budget, heightened global uncertainty and the uneven transition to broader-based growth have reinforced downside risks to the outlook.
"Regardless of how economic conditions evolve, Australia will be better placed to respond if the budget is in a stronger position," Treasury says in the briefing that was released under the Freedom of Information act.
"We therefore cannot wait for economic growth to fix the budget bottom line."
It says growth continues below trend and the unemployment rate remains too high, while global activity appears unlikely to provide any strong impetus for growth in Australia.
It says the US, UK and Ireland are the only bright spots in the global economy with all three countries having undertaken significant fiscal consolidation in recent years.
It also notes that the consequence of a strengthening US economy is the prospect of the US Federal Reserve starting to raise its interest rates.
"This has likely contributed to the underlying volatility in financial markets in recent times," it says.
Mr Morrison is expected to release his mid-year budget review later this month.
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