Claims that it's acceptable for the budget to go in deficit to boost economic growth have been rejected by the Rudd government.
Reserve Bank Governor Glen Stevens says there is a case for the government to go into debt to fund projects that will stimulate the economy.
Mr Stevens also said the government could afford borrow money with the aim on investing in infrastructure.
But Treasurer Wayne Swan says the government has no plans to let the budget slip into the red.
“We simply do not agree, or think it’s necessary, in the current circumstances, to borrow to invest,” Mr Swan said.