Budget on credible path to surplus: Hockey

Treasurer Joe Hockey has defended making some unpopular decisions in his first budget, insisting they were appropriate and there is now a credible path back to surplus.

The government still has work to do to curb spending but needs to support a struggling economy in the short term, he told the National Press Club in Canberra - a day after delivering his second budget.

"Spending is still too high, we fully recognise that, but importantly we've got to get the balance right."

Mr Hockey said Australia is on the threshold of an era of opportunity due to a swelling Asian middle class.

"We as Australians are on the threshold of our greatest ever era," he said.

The government has invested $6 billion in brokering free-trade agreements in Korea, China and Japan and is working on an agreement with India, which is set to become the world's fastest growing economy.