Welfare a safety net not cargo net: Hockey

Treasurer Joe Hockey is flagging a new era of personal and corporate responsibility in the lead-up to the budget, declaring that welfare must be a "safety net, not a cargo net".

In Washington overnight on Wednesday, Mr Hockey hailed Australia's 22-year record of continuous economic expansion.

"But the continuation of that record is by no means assured," he said in a speech.

"We are now grappling with growth stubbornly below trend as our economy rapidly transitions from the end of the resources investment boom, with rising unemployment and a deteriorating budget position."

Without policy change there would be budget deficits for a decade.

Mr Hockey said personal and corporate responsibility was fundamental.

"Welfare must be a safety net, not a cargo net," he said.

The federal government is playing down an International Monetary Fund report warning Australia's budget position went downhill in the past six months faster than 29 of the other most advanced economies.

Parliamentary Secretary to the Treasurer Steve Ciobo said the notion that the coalition had made big spending decisions in the past six months that led to the deterioration were "ridiculous".

"The reality is, what we have sought to do is to make sure the forecasts reflect the true state of affairs," he told ABC radio on Thursday.

He said the previous Labor government had made unrealistic budget forecasts and the coalition's revised forecasts reflected a more accurate picture.

"It's only a deterioration because we stopped living in a fantasy land," Mr Ciobo said.