Economic fundamentals in Aust remain strong - Swan

Swan said the global economy was experiencing some of the most difficult conditions seen in years, including a credit crunch and an oil price shock.

He said growth had slowed in many of the world's leading economies while costs for businesses and households had risen.

"The good news is that we are in a far better position than all of these countries because our underlying economic fundamentals ... are strong," the treasurer told parliament.

Swan said the budget surplus would help Australia cope with the current economic challenges.

But he said the opposition's decision to block a number of the government's budget measures in the Senate was putting at risk Australia's ability to meet those challenges.

"That is why it is so stunning that our surplus should be under attack in the Senate ... when it is so necessary to put downward pressure on inflation and so necessary to make investments in education and infrastructure."