Federal Treasurer Joe Hockey says there will be more cuts revealed in next week's budget update.

Mr Hockey said the drop in iron ore prices and others factors such as Labor blocking spending cuts would ensure the budget did not return to surplus in 2018 as previously forecasted.

The Treasurer told Sky News that action would be taken in the Mid-Year Economic and Fiscal Outlook (MYEFO), to be released on Monday, to tackle the budget situation.

"They're modest savings overall because our expenditure is very modest," Mr Hockey said.

"New spending - we're offsetting with new savings.

"The savings we're announcing are not going to have a negative impact on the Australian economy."

Mr Hockey refused to speculate if that would lead to further foreign aid cuts.

Last May's budget forecast a $30 billion deficit this financial year, and the Treasurer said that figure would now be much worse.

"Well you'll see on Monday what the cost to the bottom line is," Mr Hockey said.

The Treasurer also disagreed with the Employment Minister, Eric Abetz, who said yesterday the economy was in need of a reboot.

"It's not a term I would have used," Mr Hockey said.

"The fact is it is fundamentally strong."

He also dismissed raising the Goods and Services Tax (GST) to cover the budget woes.

"I don't see broadening the GST or increasing the rate of the GST as a silver bullet for the economy at all," Mr Hockey said.

"I don't have any desire to increase the cost of living for everyday Australians without being able to properly compensate for it and the budget has limited capacity to do that."

Mr Hockey will factor in measures that have not passed the Upper House, including the higher education changes that were rejected last week.

Shadow treasurer Chris Bowen said that called the honesty of the numbers into question.

"[Mr Hockey] needs to make sure it's an honest document, a document which truly reflects the state of the books," Mr Bowen said.

"It shouldn't reflect measures that have no chance of passing the Parliament.

"We don't know how he will deal with paid parental leave. The Prime Minister has humiliatingly walked away from his signature policy and said we'll get back to you with details shortly.

"Well, that's not good enough for a policy which will cost $20 billion.

"We need to see the details and we need to see them reflected in this mini-budget."

Hockey admits he could have been a better salesman

Mr Hockey has come under pressure this year for his performance as treasurer.

His budget included unpopular measures such as higher education reforms which were defeated in the Senate last week.

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Other contentious issues included the now-scrapped $7 GP co-payment and a rise in petrol excise.

There were reports backbenchers were pushing for frontbench rival Malcolm Turnbull to take over the portfolio.

Prime Minister Tony Abbott conceded Mr Hockey had been the target of criticism, but he expected him to become a "great treasurer".

Mr Hockey admitted today he could have done a better job selling the budget cuts.

"I think there'll be more of a conversation with the Australian people," Mr Hockey said.

"This year we were focused on outcomes rather than process. We made a mistake.

"I fully accept that we could have done more marketing.

"We could have spent more time explaining to the Australian people and we should have."