An expert cautions the federal government on spending, amid the expected budget surplus to be announced next week.

The Chief Economist at Industry Super Stephen Anthony says money should be spent on the tax system and infrastructure to strengthen the energy grid.

Mr Anthony tells Ross Greenwood the government should be careful when spending.

“We spent a decade fighting our way to get back to surplus.

“It looks like we will announce wafer-thin surpluses.

“It’s not the time to spend willy-nilly.”

Click PLAY below to hear the full interview