The head of the world's leading economic agency, Angel Gurria, has praised the Federal Government's recent budget, calling it a 'sustainable, durable solution' to deficits.

The Organisation for Economic Cooperation and Development's secretary-general says that the budget highlights a serious commitment to maintain Australia's stable government finances.

"We have seen with very great interest, and I think really with great expectations, that they are dealing very directly and decisively with the budget deficit," he told ABC television's The Business program.

"Mr Hockey has gone for a surplus in 2023, giving himself 9-10 years for a surplus. I think it's good timing, in a sense not overloading or frontloading too much at a time when recovery is still firming up."

Mr Gurria also praises the Federal Government's preference for spending cuts over tax increases in its first budget since taking office last year.

"You [Australia] went for 80 per cent cuts, one-fifth tax increase. We're always saying you should at least keep it balanced, this is a more sustainable, more durable type of solution. Once you cut the expenses it stays low, with taxes there are certain temptations," he said.

"It also tells the economic agents that in the medium and long term this situation moving into a balanced budget, or somewhat surplus budget, will allow Australia in the presence of growth to reduce its debt-to-GDP ratio."

Mr Gurria forecasts Australia will see a growth rate of about 2-2.5 percent this year, moving towards a 3 per cent growth rate next year.

The most recent official figures put Australia's growth for the year to March 31 at 3.5 per cent, while the Reserve Bank's latest forecast is for 2.75 per cent growth in 2014.

The OECD says the eurozone is improving overall, but is fragile with the downside risks still there.

"2014 is going to be better, and 2015 we have forecast it's going to continue to reaffirm this trend, but all modestly better, a modest improvement, nothing to write home about," added Mr Gurria.

For emerging economies, the situation has reversed, with countries including Brazil, South Africa and Mexico slowing down, and China holding at about 7.5 per cent growth.