Abbott prepares to deliver budget reply

Opposition leader Tony Abbott will deliver his budget reply on Thursday before parliament rises for a short break.

But his attack on Labor’s economic credentials could be marred by reports of rumblings within his own party over a failed bid by former treasurer Peter Costello to get back into politics.

Mr Abbott has slammed Labor’s budget as being full of bribes and questions the government’s ability to deliver a $1.5 billion surplus in 2012/13.

The coalition opposed one budget measure, put to the parliament on Wednesday, that will deliver cash payments to 1.3 million families with school kids within weeks.

And it has reserved a position on a number of other budget measures, including the $5.4 billion cuts to Defence.

Mr Abbott will have an opportunity to spell out what parts of the budget he will back or oppose, and offer an alternative spend in his budget reply to parliament on Thursday evening.

But Labor is likely to question the credentials of his own economic team after ABC TV reported Mr Costello actively sought a comeback to federal politics late last year.

Mr Costello, who resigned as the member for Higgins in October 2009, reportedly asked his old friend Michael Kroger to see whether a sitting member might vacate their seat so he could return to Canberra.

Mr Costello has rejected the claims, suggesting they could be payback over an ugly internal brawl over the Victorian Senate ticket.

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