Cormann stands by growth forecast

The Abbott government is standing by its budget forecasts in the face of International Monetary Fund warnings economic growth is likely to remain below its potential.

The IMF is concerned Australia is aiming for a budget surplus too quickly when faced with a sluggish national economy, but Finance Minister Mathias Cormann believes the government's forecasts are correct.

"Our plan for economic growth is working," Senator Cormann told ABC radio on Thursday, noting growth in Australia in the first half of the year had been one of the strongest in the world.