In its submission for the May budget, the Business Council of Australia said the federal government should reinstate a 2 per cent cap on real spending growth, limit tax collections to 23.9 per cent of gross domestic product and set a debt target - all subject to scrutiny by an independent organisation.

"A set of clear fiscal rules should be monitored by an independent authority such as the Parliamentary Budget Office and include public reporting of adherence to the rules," the council said in its submission. "It is important there is transparency around the government's finances and how tax dollars are spent."

The 2 per cent real spending cap, if introduced, could revive concerns about the ability of federal agencies to recruit and retain staff and provide the services expected by taxpayers.

The idea is among a number of proposals put to the government by peak business and industry organisations to use the budget to set the country on a strong and sustainable growth path.

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Other recommendations advanced by the council, the national employer association Ai Group, the Australian Chamber of Commerce and Industry and CPA Australia include measures to boost business investment, increase the supply of skills and labour, improve the effectiveness of government spending and manage the costs of the transition to renewables.

The budget is being framed amid expectations that the economy will slow this year, increasing the strain on households and businesses already dealing with elevated inflation and the highest interest rates in a decade.

The government is under pressure to provide additional cost-of-living relief and improve the delivery of services while controlling spending and debt.

Treasurer Jim Chalmers said the government had already started improving the budget's financial position and seized on confirmation of the nation's AAA rating by global ratings agencies as an endorsement of Labor's financial and economic strategy.

"In the face of ongoing global challenges and uncertainty, our economic plan is about making the budget more responsible, our economy more resilient, and providing responsible cost-of-living relief that doesn't add to inflationary pressures," Dr Chalmers said.

He has also flagged a leadership role for government in harnessing markets and private capital to support broad-based prosperity.

Council chief executive Jennifer Westacott said getting government spending and debt under control was an important part of changes that need to be made in the Budget to drive investment, boost growth and deliver sustainable wage growth.

"The next budget is a crucial chance to transition the nation away from ... reliance on government and to unleash the private sector, lift incomes and start paying down debt," Ms Westacott said.

She urged the government to do more to encourage business investment and lift productivity rather than relying on labour shortages to deliver wage increases.

"We need to do everything we can to encourage big companies to make the large investments that will transform the economy, smooth the path to net zero and set us up for growth," she said.

Ai Group chief executive Innes Willox echoed Ms Westcott's call for the government to tackle "entrenched low productivity" and restrain its spending.

"Australia is very close to the point ... where the economy will slow sufficiently to reduce inflation," Mr Willox said.

"The budget should avoid stimulating spending and prices and also avoid adding to contractionary pressures."

CPA Australia has warned the nation's rapid transition to renewable energy could add to price pressures in the economy.

CPA Australia senior manager, business and investment policy, Gavan Ord, said achieving 82 per cent of energy from renewable sources by 2030 will involve "very large" investment in a short period of time creating the risk of "greenflation".

"There is a lot of good faith towards government about the transition and we don't want to see that lost," Mr Ord said.

"Business needs a transition plan that sets out what is needed to be done and when, and how much it costs. That provides business with more certainty so they can plan when to invest and what to invest in."

CPA Australia also expects the number of business insolvencies to increase as the economy slows, and wants the Budget to include funding so the Australian Securities and Investments Commission can provide advice for distressed operators "before it is too late".