Much to support in the budget: Abbott

Tony Abbott has praised welfare reforms, infrastructure spending and increased defence spending in Tuesday's federal budget.

Tony Abbott has given his thumbs up to the Turnbull government's second budget effort. (AAP)

Former prime minister Tony Abbott has given his thumbs up to the Turnbull government's second budget effort.

Mr Abbott said there was much to support in the budget.

"There were important reforms to welfare which are going to ensure people are fair dinkum seeking work," he told 2GB Radio on Wednesday.

He also praised infrastructure spending, particularly the Western Sydney airport, and increased money for defence.

On the government's surprise $6.2 billion levy on Australia's largest financial institutions, Mr Abbott said it was a matter for the bank bosses to decide if they wanted to lift their standing with the public by absorbing the tax.

"The government needs to get the revenue from somewhere. If we can't get the savings through the Senate that we tried in 2014 and 2015 we have to repair the budget and fund spending in other ways," Mr Abbott said.

"This is the best way forward."