Rate cuts due to fiscal policy: Swan Treasurer Wayne Swan will enjoy the benefit of an interest rate cut as the federal government prepares to make the difficult choices in next week's budget. But welfare groups have attacked the government for ditching its planned increase to family benefits, while the opposition challenged the treasurer to deliver an honest budget next week after five years of confusion. The central bank unexpectedly cut the cash rate by 25 basis points to 2.75 per cent at its monthly board meeting on Tuesday, a record low in the cash rate setting era. "These rates are possible because the government has (had) in place a responsible fiscal policy over the past five and half to six years," Mr Swan told reporters in Canberra. However, this good news for borrowers came as the government scrapped a planned increase in the Family Tax Benefit Part A. "This is a difficult decision but a responsible decision given what's happened to revenue," Finance Minister Penny Wong told Sky News. Australian Council of Social Services (ACOSS) CEO Cassandra Goldie slammed the decision, saying the government should instead focus on other measures such as the Baby Bonus. "We understand the current pressures on the budget but quite frankly there are other more important areas where savings can be found rather than going back on a promise that would greatly assist around a million of our nation's lowest earning families," she said. Australian Greens Leader Christine Milne agreed. "Why is it that you would protect the mining bosses, the big miners of Australia and not support the most vulnerable and needy in our community?" she said. The increased benefit was meant to be paid out from revenue from the government's mining tax, but the impost is expected to raise less than half what was forecast in its first year, and is likely to miss annual targets over the forward estimates. Opposition Leader Tony Abbott said this "rock solid" commitment made in last year's budget had been used as stick to "beat the opposition mercilessly" over family welfare. Senator Wong also confirmed the revenue drop for this financial year "looks to be in the order of $17 billion," from the forecast in last year's budget. Shadow treasurer Joe Hockey told a conference in Sydney whatever Mr Swan said on budget night would be "meaningless," given previous forecasts had been wrong and promises made in past budgets had not been met. "I know I am setting him a ridiculous benchmark but I think we expect honesty," Mr Hockey said.