Speaking on Today, Mr Frydenberg said he was “very conscious” Australia is now heading towards $1 trillion worth of debt.
“This has been the biggest economic shock since the Great Depression. It has created a huge hole in the economy.”
With an eye firmly on the next election, the government earmarked billions for infrastructure, business incentives and employment programs.
In the wake of the aged care Royal Commission, the centre piece is a $17.7 billion injection for aged care, a sector which has been on its knees.
The treasurer has promised $7.8 billion worth of tax cuts.
On the key question of when Australia’s international borders would re-open, the budget is forecasting international travel will remain off the cards for another year.
“The budget we delivered last night will help make the Australian economy stronger,” Mr Frydenberg said.
The treasurer said the jolt of the coronavirus on Australia’s economy required an “unprecedented economic response”.
There will be no budget surplus over the next four years.
Mr Frydenberg said wages would increase when Australia’s unemployment rate dropped.
He expected unemployment to get below 5 per cent by the end of next year.