Finance Minister Penny Wong says the federal opposition is being irresponsible by talking down the economy and likening it to a collapsed US investment bank.
Shadow finance minister Andrew Robb on Thursday questioned the relevance of Australia's top level triple-A credit rating because Lehman Brothers had the same when it succumbed to the global financial crisis in 2008.
Senator Wong said Mr Robb was warning investors off Australia.
"It's irresponsible, dishonest, it's damaging to confidence," she told reporters in Melbourne.
"What we have is the man who would be finance minister, another shadow senior minister of the coalition, talking down the Australian economy."
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Australia is one of only eight countries in the world to have a triple-A rating from all three global agencies - Standard & Poor's, Fitch Ratings and Moody's Investors Service.
Senator Wong and Treasurer Chris Bowen are currently putting together an economic update to be released before the looming federal election.
It's likely to revise forecasts in the May budget and including savings measures to pay for new policies such as the plan to send asylum seeker boat arrivals to Papua New Guinea for processing and possible resettlement.
So far, reports suggest Labor is planning to abolish its school kids bonus - the cash payment of up to $820 made to parents to help pay for school related expenses - or make further changes to superannuation arrangements.
Senator Wong declined to comment.
"The school kids bonus is a very important policy area, but I am certainly not going to be drawn ahead of the economic statement on ruling things in, or ruling things out," she said.
Senator Wong said the government, unlike the coalition, had a plan for the economy.
"Andrew Robb, like (shadow treasurer) Joe Hockey, goes around talking about the importance of fiscal responsibility but he never delivers," she said.
Health Minister Tanya Plibersek wouldn't comment on whether health funding would be cut in the upcoming economic update, but said the government faced a "large challenge" and wanted to live within its means.
"We need to continue to find sensible options to ensure every tax-payer dollar delivers maximum benefit," she told reporters in Sydney.
"Every year we see hospital funding increase for example ... every year we see Medicare billing increase as we increase bulk billing ... but that also requires we make sensible savings along the way."
