Josh Frydenberg says the Coalition will not compromise"the strength of the economy"to manage rising environmental concerns.
"This is something that countries can't actually argue about. It is a major issue."
As the IMF warns global warming is a major financial risk,the RBA has been told it may have to buy coal mines and fossil-fuel power stations to save the economy.
Securing a largely symbolic budget surplus should not distract the Morrison government from real reform on tax,workplace relations and energy.
If the Coalition's promised economic upturn fails to materialise,it can always use the buoyant iron ore price and Future Fund income to keep its budget in the black.
The Morrison government has abandoned its goal of eliminating net debt by the end of the next decade.
The Mid-Year Economic and Fiscal Outlook,out on Monday,will not make the government's life easier. And its dedication to a budget surplus could be challenged by the volatility in the price of a single commodity - iron ore.
The IMF has told the Morrison government to ditch its budget surplus and make direct cash payments to households if the economy deteriorates and urged infrastructure spending.
The Treasurer will use a speech on Tuesday to argue"mega-trends"facing the world mean Australia needs to face substantial reform.
The Treasurer Josh Frydenberg says it is"not a time to panic"over tumbling growth.
The Morrison government has revealed it is building a budget surplus in case the economy deteriorates.