Treasurer Josh Frydenberg's third budget on Tuesday will be the centrepiece of the economic calendar this week but there are also crucial figures on retail spending and jobs.
Mr Frydenberg is likely to hand down a budget for the 2021/22 financial year that is in far better shape than expected just a few months ago.
It will be buoyed by the rapid recovery of the labour market from last year's recession and a huge spike in the iron ore price that has substantially lifted revenues.
The budget deficit for 2020/21 is now expected to be $155 billion compared with the $197.7 billion previously forecast, while economists predict the deficit for 2021/22 will have shrunk to $80 billion from 108.5 billion.
The iron ore price struck a record $US200 per tonne late last week compared with the mere $US55 per tonne forecast in December's mid-year budget review.
The jobless rate had also dropped to 5.6 per cent in March when Treasury had predicted it rising to 7.5 per cent at that stage of the year.
Despite these positives signs, Mr Frydenberg remains cautious.
"This is another pandemic budget," he told Sky News' Sunday Agenda program.
"We are not out of this crisis yet; you only have to see terrible events around the world."
On Monday, the National Australia Bank will release its influential monthly business survey for April, which will lay out how firms are fairing heading into the budget.
In March, business conditions were the strongest on record, while confidence remained well above average.
The Australian Bureau of Statistics will also release final retail spending figures for March, as well as sales data for the March quarter.
Economists expect spending growth will be around the 1.4 per cent increase seen in the preliminary figures.
However this won't be enough to prevent a 0.4 per cent decline in the March quarter, following two strong previous quarters, and a modest negative for the economic growth result for the March quarter, which is due on June 2.
Just hours before the treasurer hands down the budget, the ABS will issue its weekly job payrolls report on Tuesday, a precursor to the official labour force figures later this month.
It will be the first report to contain the full impact, if any, of the JobKeeper wage subsidy ending in March.
Treasury has previously forecast that up to 150,000 people could lose jobs as a result of the scheme ending, although economists are becoming more confident the strength of the labour market can see these absorbed.
Australian shares will kick off budget week fairly flat, despite Wall Street continuing its run of record closes.
The latest run-up came as a weaker than expected US payrolls report fuelled expectations the Federal Reserve won't be raising interest rates any time soon.
Employers added just 266,000 jobs in April, far fewer than the 975,000 that economists expected
The S&P 500 index rose 0.7 per cent to 4,232.60, its third straight gain. The Dow Jones Industrial Average also gained 0.7 per cent to 34,777.76, while the Nasdaq composite picked up 0.9 per cent to 13,752.24.
However Australian share futures were four points down at 7059.
This followed Friday's local upbeat performance led by resources shares, buoyed by the rising iron ore price.
The S&P/ASX200 index closed 0.3 per cent higher at 7080.8 on Friday and 0.8 per cent higher on the week.
Australian Associated Press