Treasurer capitalises on top credit rating

It noted the budget didn't provide any cost of living offsets in a deliberate move by the government to contain spending and avoid exacerbating inflation.

The finance and insurance company also predicted slowing GDP growth, predicting a 1.5 per cent rise in 2023 compared to 3.9 per cent this year, mainly due to high inflation and rising interest rates.

Treasurer Jim Chalmers says the affirmation is "a strong endorsement of the Government's economic management".

"It shows that our budget was defined by the times and designed for the times, and we got the fiscal settings right," he said.

Dr Chalmers says rising inflation was the number one challenge facing the economy. 

"That's why our economic plan is carefully designed to avoid putting upward pressure on prices and making the job of the Reserve Bank harder," he said.