There is a growing list of demands for the Australian government to spend its multi-billion dollar budget surplus.

Kevin Rudd, whose government hands down its first budget on Tuesday, says he wants the budget to boost productivity.

"If we do not start acting now Australia will wake up one morning with the mother of all economic hangovers," he said.

He is predicted to have a surplus of at least $US16 billion which could go on infrastructure and education.

The opposition education spokesman, Tony Smith, says $US2.8 billion is needed to stop parents having to top up the computers in schools policy.

"Working families will be working more to pay higher fees or they'll be working at fundraisers to raise the money," he said.

The minority Family First party is warning the government not to focus entirely on working families it wants the single aged pension lifted by $US66 a fortnight.

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