Treasurer Wayne Swan says the latest central bank statement shows the economy remains strong.
Mr Swan said the Reserve Bank of Australia quarterly monetary policy statement reflects solid growth, low unemployment, a big investment pipeline, contained inflation and record low interest rates.
"What jumps out of this statement today is how much Australia has got going for it when it comes to our economy ... (and it) confirms the underlying strength of the Australian economy," he told reporters in Canberra.
Mr Swan said the 25 basis point cash rate cut announced this week had come about because inflation was contained.
Mr Swan said the economy was undergoing two big transitions: from the investment to the production phase of mining, and from reliance on the resources sector to growth in the non-mining sector.
"What the government is doing in the middle of these two big transitions is what we always do ... give our number one priority to supporting jobs and growth," Mr Swan said.
"That's what the budget will do this coming week - find the balance, but give the number one priority to supporting jobs and growth in our economy."