The federal government's first budget surplus since John Howard was prime minister could be as high as $11 billion, on the back of bigger-than-expected tax revenues.
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Treasurer Josh Frydenberg has vowed to deliver a surplus in the financial year 2019/20 and will reveal the coalition's revised projections when he releases his first budget update on Monday.
Prime Minister Scott Morrison says the mid-year economic and fiscal outlook will show the government is holding to its promise of better financial management.
"We promised to bring the budget back into surplus and that's exactly what we're doing," he told reporters in South Australia this week.
"We promised to create a stronger economy and that's exactly what we're doing."
While the magnitude of the 2019/20 surplus will be the centrepiece of the mid-year budget and economic update, there will also be improved and revised figures for the current 2018/19 budget year.
Deloitte Access Economics expects the government will rake in an extra $9.2 billion in revenue in 2018/19 than it forecast in the May budget, on the back of a spike in tax revenues.
Economist Chris Richardson is tipping an underlying cash deficit of $4.9 billion for 2018/19, followed by a surplus of $4.2 billion the following year.
The government in May forecast a $14.5 billion deficit for 2018/19, followed by a $2.2 billion surplus in 2019/20.
AMP Capital chief economist Shane Oliver is also expecting to see an impressive budget improvement.
He forecasts a $6 billion deficit this year and an $11 billion surplus in 2019/20, with bigger surpluses to follow.
"It's mainly been because of stronger tax collections, as a result of stronger employment and higher corporate tax revenues," Dr Oliver told AAP.
CommSec chief economist Craig James is expecting a near-balanced budget for 2018/19 and surplus of about $4 billion next year, with lower-than-forecast spending supporting the result.
"Both sides of the ledger are contributing to the improvement that we're seeing in terms of the budget bottom line."
Westpac is predicting an even bigger 2019/20 surplus of $7.2 billion.
Dr Oliver and Mr James noted the government could be tempted to raise spending in the lead up to the election.
On the government's forecasts for factors such as economic and wages growth, the pair also agree the May budget's forecast for 2.75 per cent wage growth in 2018/19 is a little high.
Labor says the government has been boasting it has delivered a surplus, despite the 2019/20 not having yet been achieved.
"They are forecasting a surplus. They told us they are forecasting a surplus. Fair enough, but that is not delivering a surplus," shadow treasurer Chris Bowen told reporters during the last week of federal parliament.
He stressed the surplus is being delivered on the "back of taxpayers" who are taking an increased burden under the coalition.
The budget update will be released on December 17.
Australian Associated Press
