It's offering tax cuts to small and medium businesses and a modest income tax break for 500,000 middle-income Australians to bolster the Coalition's election hopes and drive the economy.
It's sparked mixed reactions from all sides of politics.
"The government is setting out to ensure that our children and grandchildren have the opportunities they deserve in the future. That's why we've laid out an economic plan that will deliver jobs and growth for the future."
Prime Minister, Malcolm Turnbull, spruiking the government's plans for Australia's economy.
He says it's a budget that backs Australian enterprises, ensures the tax system is sustainable and brings the budget back to balance.
At the centre of the budget, a six point plan the government maintains will help the economy transition from the mining investment boom to a broader income base.
Treasurer Scott Morrison says it includes innovation and science programs, export trade deals, tax cuts and incentives, a sustainable budget and guaranteed funding for sectors including health and education.
Mr Morrison says each of the six components include targeted, affordable action.
"The plan is multi-faceted so it can meet the needs of our economy and our people. Policy settings should not hold back Australians and the nation's prosperity. Unrealistic, unfordable policy measures will not help the transition, it only puts it at risk."
But the federal Opposition's accusing Malcolm Turnbull of being out of touch with average Australian families.
Opposition Leader Bill Shorten told the ABC, it's a budget which favours the millionaires over the battlers.
"If you earn a million dollars in income, you will get nearly $17,000 in tax cuts courtesy of Malcolm Turnbull. But if you earn less than $80,000, you won't get a cent of a tax cut. And indeed, if you're an average family on $65,000 a year, the Liberals, led by Mr Turnbull are cutting the family tax benefits payment so you're going to be down net $3000."
Australian Greens leader Richard di Natale wasn't a big fan of the budget either.
"What we've seen here is the Prime Minister talking about an economic plan for jobs and for growth and yet he's silent on the biggest challenge facing our economy and that's the transition to a clean-energy economy which we know is a jobs-rich economy, one that brings in international investment. Clean-energy means hundreds of thousands of jobs."
Meanwhile, the budget drew a mixed response from the states and territories.
Victorian Treasurer, Tim Pallas, claims the federal government has shaped its budget toward the upcoming election, rather than thinking of the nation's best interests.
He says health and education has been neglected, and the federal government is spending considerably less than Victoria combating family violence.
The State's treasurer told the ABC, Victoria has been ripped-off when it comes to infrastructure funding, with the State's taxes paying for projects in Sydney and Brisbane.
"They continue to hold back the fastest growing economy in the nation by distorting their investments around their own political agendas rather than the needs of the nation. And that's the unwritten story of this budget. It's a budget with an eye on the electoral map and no eye or any concern for the Victorian community."
Northern Territory Treasurer David Tollner says he would've like the so-called "backpacker tax" to have been dumped from the budget.
The NT campaigned against the proposed tax, which would hit backpackers for 32.5 per cent from the first dollar earned.
Mr Tollner says northern Australia's agriculture, horticulture, tourism and hospitality industries, which struggle to attract local workers, would suffer the most.
"Changing that tax, while disappointing for us up here, because we do have an over-reliance on backpackers, you know is to be expected."
New South Wales' treasurer Gladys Berejiklian says the budget will promote economic growth in the state.
She says she is pleased with the budget, which includes major infrastructure projects, such as a pledge for $2.9 billion for western Sydney over five years.
But her praise for the Turnbull government's education funding was less enthusiastic, as she told the ABC.
"Both income tax cuts and business cuts which will stimulate economic growth. We're extremely pleased that we have extra money for infrastructure, we've had our health funding restored for the next three years and obviously in education we've received some funding and we'll continue to argue for more at the next appropriate opportunity during the COAG process."
Western Australian Premier Colin Barnett made it clear before the federal budget was handed down, he didn't expect W-A to get much beyond projects that had already been earmarked for funding.
The federal budget indeed offered little in the way of new funding for the state.
Australia's largest state stands to be most affected by transitioning the economy from a mining investment boom, to what the federal government is calling a stronger, more diverse new economy.
But Mr Barnett did welcome the budget's commitment to infrastructure and tax concessions for small and medium businesses.
And he says if it's achieved, the forecast for the Australian economy, with steady growth and unemployment remaining at current levels, would be a good outcome.
