Opposition Leader Tony Abbott has launched a scathing attack on Prime Minister Kevin Rudd's economic credentials, calling him Australia's "world champion, gold medal fiscal vandal".
As the government prepares an economic statement ahead of the looming federal election, Mr Abbott says it's important to look for savings in the budget but it is even more important to restrain spending.
"This government's problem is that it is engaged in a constant spendathon," Mr Abbott told reporters in Brisbane.
He said there must also be a clear strategy for economic growth.
"We cannot have a strong economy without strong and profitable private businesses and that means getting taxes down, getting regulation down and means having a government that lives within its means."
He said Mr Rudd had been talking about productivity ever since 2007, but multi-factor productivity had fallen three per cent since then.
"We have a productivity crisis in this country," he said.
He said Australia's triple-A rating was due to the sustained reforms of the former Howard government and those of the Bob Hawke and Paul Keating governments, and owes nothing to the spending spree of the current government.
Shadow treasurer Joe Hockey said the government was made up of hypocrites.
He cited reports that Labor was planning to abolish its school kids bonus - the cash payment of up to $820 made to parents to help pay for school-related expenses.
There's also speculation the government may consider further changes to superannuation arrangements.
"The Labor party is made up from A to Z of hypocrites," Mr Hockey told reporters in Sydney.
"You cannot run a budget and you cannot run an economy like this."
The government's inability to get the budget under control was fanning business and consumer uncertainty, he added.
"Frankly, there is nothing the government is going to say in its economic statement that is believable," Mr Hockey said.
The government is due to release an economic and fiscal update before the federal election date is decided.
It's likely to show revisions to growth forecasts published in the May budget, and lay out new savings measures and costings.
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