In an interview with Reuters, Hockey said he was confident the economy would extend a run of annual growth that dates back to 1991, and was dismissive of talk that the sovereign debt rating was in danger.

Investment bank Goldman Sachs this week warned the rating could come under threat within months because of a change to the way Standard & Poor's assessed sovereign risk, combined with the outlook for years of budget deficits as a decade-long mining boom winds down.

Australia's net debt is forecast to rise to $245 billion by the end of the fiscal year in June, but at 15 per cent of gross domestic product it is very low by international standards. Still, the outlook is for debt to grow, with the budget deficit expected to be around $40 billion in 2014/15, with further shortfalls seen over the following three years.

Hockey's first budget last year proved deeply unpopular and many of its measures were blocked in a divided senate. Hockey had repeatedly warned of a "debt and deficit disaster" when campaigning for office in 2013 and ahead of last year's budget, prompting critics to accuse him of a scare campaign given basically sound economic fundamentals.

Prime Minister Tony Abbott has promised this budget will be less of a drama, suggesting the government has given up on returning to surplus anytime soon.

"We tried to do 40 years of budget repair and a decade of structural reform in one document," Hockey said. "That was clearly too much."
I thought, according to the coalition's sales pitch, that Australia was in danger of losing the AAA rating.

Isn't that the whole debt & deficit argument?

Tony Abbott acted against the direct advice of the Defence Department when he talked up the possibility of Japan winning the $20 billion "Future Submarines" contract.

High-level departmental advice to the government reveals its overwhelming preference was for Adelaide-based, government-owned ship builder ASC to do the bulk of the work.

The department's swift release of the ministerial advice under freedom-of-information laws adds to the intrigue and confusion around the government's seemingly ever-changing submarine policy.

Reports emerged last year that Mr Abbott had indicated to his Japanese counterpart Shinzo Abe that Australia was keen to have his country supply the submarines

Tony Abbott has offered more soothing words before the May 12 budget after widespread outrage at his government's first effort a year ago.

The prime minister announced on Sunday $840 million in preschool funding as part of the government's more family-oriented focus - and promised people will feel happier after Treasurer Joe Hockey's second budget.

"Our country is coming back. Our economy is strengthening and I think people will be more confident and optimistic on budget night," Mr Abbott told reporters in Sydney.

The best option for Abbott is to step aside and allow confidence to grow in the population. AU is deliberately being held up by his unpredictable attitude.

A ban on Facebook in Nauru was implemented at the request of the Australian Government to assist its Cambodian resettlement policy, a refugee advocacy group says, citing an anonymous source.

Nauru opposition MP Matthew Batsiua said Facebook users in Nauru discovered on Thursday they had been denied access to the social media site.

He said it was an attempt by the Nauru government to prevent free speech and curb any criticism it faces.

Pamela Curr from the Asylum Seeker Resource Centre said that one of her contacts within the Nauruan community told her the Australian Government was behind the ban.

Abbott’s East West road link in Victoria is dead and buried, The former govt; and Abbott should be had for fraud. A useless project without due thought. No contract just a signed paper that allowed preliminary works to begin. This whole project was rushed in an effort to save the Napthine govt, at any cost. Which failed miserably.