A stronger than expected economy, record numbers of people employed and a spike in commodity prices sees $100 billion worth of reductions in budget deficits projected until 2025/26.
"A strong economy means a stronger budget," Mr Frydenberg told parliament just days out from an election being called for May.
But despite already heated inflation, the treasurer went ahead with his much-promised cost-of-living package worth $8.6 billion, responding to petrol prices striking record highs above $2 a litre in recent weeks.
"As we predicted, because this is a pre-election budget, there is plenty of bread for the masses, especially in the context of the sharply rising cost of living," BDO tax partner Mark Molesworth told AAP.
"Unfortunately, comprehensive tax reform continues to be placed on the backburner."
The measures include halving fuel excise for six months - saving 22 cents a litre - and a one-off $420 cost of living tax offset for more than 10 million low-and-middle income earners.
There is also a new one-off $250 cost of living payment for six million pensioners, carers, veterans, job seekers, eligible self-funded retirees and concession card holders.
Deloitte Access Economics economist Chris Richardson says such spending does risk the Reserve Bank of Australia raising the cash rate sooner than would other be the case.
"For a strong economy we are adding extra dollars into it and the risk is the Reserve Bank says 'that's too much' and they take the extra dollars back out through higher interest rates," he told ABC television.
Shadow treasurer Jim Chalmers said the government has taken a bunch of economic challenges and pushed them to the other side of the election.
"So it is very short-sighted, very desperate, very panicked," he told the ABC.
The ACTU said one-off payments are not a substitute for real wage growth.
"The best the prime minister can offer workers in this budget is one per cent real wage growth by 2025/26, with wages going backwards in real terms through the first half of this year,"' ACTU president Michele O'Neil said.
A tight labour market, with the unemployment rate forecast to fall below four per cent this year, is expected to see wages growth accelerate from its current rate of 2.3 per cent to 2.75 per cent by the end of June.
For 2022/23 and 2023/24 wages are expected to grow by 3.25 per cent, before edging even higher to 3.5 per cent beyond that.
However, inflation forecasts have been increased, starting with a spike to 4.25 per cent this financial year and staying at the top end of the RBA's two to three per cent target over the next few years.
The annual rate of inflation was already running at 3.5 per cent in December.
National Australia Bank economist Taylor Nugent was expecting annual inflation to be 5.1 per cent by the June quarter, even before taking account of the budget.
"NAB's view is the RBA will start to hike by August 2022 with every meeting live from May," he said.
For the current 2021/22 financial year the budget deficit is now forecast at $79.8 billion, compared with $99.2 billion predicted in the mid-year budget review released last December.
For 2022/23 the deficit is now put at $78 billion compared to a previous forecast of $98.9 billion.
