The federal government is set to unveil a balanced budget today, one without major new tax cuts or spending plans.

On Tuesday, Finance Minister Jim Flaherty promised a couple of surprises, but added his third federal budget will be a cautious one for uncertain financial times.

Despite his assertions that expectations should be kept low, there is widespread belief that Flaherty has more room to act.

Reports suggest the Conservative government might disclose at least $1 billion more than expected in surplus money with a total surplus possibly pegged at $13 billion.