Treasurer Joe Hockey will deliver the mid-year budget review before Christmas and not in January. FEDERAL Treasurer Joe Hockey intends to release the mid-year budget review before Christmas and not in January as previously flagged. In a speech in New York, Mr Hockey laid out the plans for the new coalition government, but warned the economy looks set remain at a sub-trend growth pace for some time. "Further structural reform is needed to lift the underlying potential of our economy," he told the American Australian Association on Wednesday (Australia time). Failure in recent years to embrace reform had seen a deterioration in productivity "over and above" the temporary dampening impact that would have been expected from a receding mining investment boom. The government was determined to bring the budget back to surplus, but through a realistic timetable that properly recognised the real state of the budget, Mr Hockey said. "Undeliverable expenditures promised on the never-never and taxes to be raised with legislation that is virtually undraftable will be jettisoned," he said. There will also be a more realistic assessment of the impact of external factors on the budget. "The first round of all these decisions will feed into our Mid-Year Economic and Fiscal Outlook, which I expect to release before Christmas," the treasurer said. One of his first tasks when the new parliament sits in November will be to legislate an increase in the $300 billion debt cap, a level that will be reached by Christmas. The previous Labor government forecast debt rising to $370 billion in 2015/16. Mr Hockey said Labor increased the debt limit four times, and such an approach "only adds to uncertainty." "We believe the debt limit needs to be set at a level that provides sufficient headroom to accommodate likely events, but also to provide discipline to budgetary management," he said. Once set, the debt limit must be adhered to through prudent management of the nation's finances. The government soon will undertake a national commission of audit to ensure taxpayers are receiving value for money.