Treasurer Josh Frydenberg has firmly shut the door on borrowing money to further stimulate the slowing economy, indicating he doesn't see a major risk of recession.
Economists have been calling for fiscal stimulus and aggressive monetary policy since annual growth slipped to just 1.8 per cent in the year to March - the weakest growth in a decade.
Seasonally adjusted unemployment rate was at 5.2 per cent in May with some economists now forecasting it to rise to 5.5 per cent within two quarters.
Despite the gloom, Mr Frydenberg believes his "reform agenda" of tax cuts, infrastructure spending and skills training will be enough to revive the tepid economy.
He says the government remains "absolutely committed" to a surplus and won't borrow money for additional stimulus measures should the economy slow even further.
"No ... we took to the election our budget commitments and we will faithfully implement them," the treasurer told a Australia-UK Chamber of Commerce audience in London on Friday.
"In fact, my first priority is about implementing our election commitments and it's outlined in the budget."
Mr Frydenberg instead compared Australia's strength to other advanced economies and didn't respond to a question about how he could stimulate in the event of a recession.
"We need to maintain the course, stick to our economic plan as set out in the budget, which is all about a growth agenda," he said.
The Reserve Bank slashed the cash rate to a record low of 1.25 per cent at its June 4 meeting.
