Budget based on quicksand, says Hockey

The federal budget has made no provision for any financial instability that might flow from the debt crisis in Europe, the opposition says.

"It's a budget based on quicksand," treasury spokesman Joe Hockey told ABC Radio on Wednesday.

The government had based a return to surplus in three years on the back of an assumption that Australia would have its best terms of trade in 60 years, he said.

"But there's no provision at all for Greece or the impact that instability in Europe might have on the rest of the global economy."

The budget was based on higher taxes and "heroic assumptions and huge contradictions".

"For example there's an assumption that a $9 billion-a-year tax on mining profits will not flow through to everyday households," Mr Hockey said.

He dismissed as "not real" the budget's forecast of a $1 billion surplus by 2012/13 saying there had been cost blowouts in government spending including border security.

"It's a wish, a hope and a prayer."

Mr Hockey said the opposition would provide a detailed response to the budget "in the not too distant future".

Mr Hockey said Tuesday's tight budget was what Australia needed, but it would not be delivered.

The promised return to a surplus in three years was unrealistic based on current government spending levels at more than $700 million each week to fund existing promises, he told the Nine Network.

"It's what we needed but they're not delivering," Mr Hockey said on Wednesday.

"It's a wish and a hope and a prayer that in three years time they will deliver a surplus of just $1 billion out of what will be a $350 billion expenditure in that year."

The $9 billion resources profits tax will hit all Australians in the form of inflation, Mr Hockey said.

"Big businesses will pass it on to everyday Australians in the supermarket, in electricity prices, and that will push up inflation and that will push up interest rates.

"There's nothing in the budget to address that."