Though Treasurer Wayne Swan does not want to row back on the government's stimulus plan, he admits that unemployment won't be so bad and interest rates will finally rise.

As per the economists, the Reserve Bank of Australia might not raise the official cash rate at tomorrow's board meeting.

Due to the recent strength in economy, the need for the government to deliver all of its infrastructure spending has been questioned by many leaders.

However, Mr. Swan specified that the economic rebound would be threatened if the cut back on the stimulus is introduced.

This has given rise to calls from Opposition treasury spokesman, Joe Hockey, against Mr. Swan's public release of this advice.

However, now Mr. Swan admits that unemployment won't touch the 8.5 per cent peak forecast in the May budget.

However, he did not predict the timing of an interest rate rise, which has been flagged by central bank governor, Glenn Stevens.