The 2017/18 budget projects a return to balance in 2020/21, improving from a deficit of $29.4 billion to a projected surplus of $7.4 billion within four years.
"This budget is about making the right choices to secure the better days ahead," Mr Morrison told parliament on Tuesday.
"Our choices are based on the principles of fairness, security and opportunity."
The treasurer said small business owners and families had been through tough times with the winding down of the mining boom, globalisation and technology change.
"I believe, though, that we are now moving towards the end of this difficult period."
In a bid to reset the "Mediscare" debate, the coalition will lift the freeze on the indexation of the Medicare Benefits Schedule and reverse the removal of the bulk-billing incentive for X-rays and pathology services and the increase in the PBS co-payment and related changes.
This comes at a cost of $2.2 billion over four years.
Mr Morrison also announced new laws to "guarantee" Medicare and the PBS, with proceeds from the Medicare levy and a portion of income tax paid into a new Medicare Guarantee Fund.
With the national disability insurance scheme about to become a big burden on the budget, the Medicare levy will be lifted by 0.5 percentage points in two years' time.
A new schools funding plan announced last week was confirmed, costing an extra $18.6 billion over the next 10 years
Pensioners hit by an assets test change introduced earlier this year will get their concession cards back.
Growth of 2.75 per cent in 2017/18 is expected to be driven by a rise in household consumption, non-mining business investment and exports.
The jobless rate is set to ease from 5.75 per cent this year to 5.25 per cent in 2020/21 as the government rolls out its business tax cuts, extends a small business write-off for another year and commits to a $70 billion transport infrastructure plan.
"To support growth we choose to invest in building Australia, rail by rail, runway by runway and road by road," Mr Morrison said.
The government will inject up to $5.3 billion over 10 years into the new Western Sydney airport - to start in 2026 - creating 20,000 jobs by the early 2030s.
The commonwealth could also acquire a larger share or outright ownership of Snowy Hydro, from the NSW and Victorian state governments, and make $10 billion available for rail projects.
Construction of the 1700km Melbourne to Brisbane inland rail project will start this year with $8.4 billion provided to the Australian Rail Track Corporation.
A $1.2 billion skills fund to provide new apprenticeships will be paid for by a foreign worker levy.
Defence spending will hit two per cent of GDP by 2020/21 - three years ahead of schedule - creating jobs and improving national security.
Having promised better housing affordability, a $1 billion UK-style fund will be set up to provide new homes in cities, with a further $1.3 billion for the states and territories to improve supply of low-cost housing.
First home buyers will be able to save for a deposit by salary sacrificing into their superannuation account over and above their compulsory superannuation contribution from July 1.
The government has tweaked tax concessions for property investors, excluding travel expenses and limiting depreciation deductions.
Downsizers over the age of 65 will be able to make a non-concessional contribution of up to $300,000 into their super fund from selling the family home.
To pay for much of its reversal of so-called "zombie" savings measures from the controversial 2014 budget a levy will be imposed on the big banks reaping $6.2 billion.
A further tax office crackdown on multinationals is set to reap $4 billion this year, with other tax measures - including allowing fewer deductions for negative gearers - to boost revenue by $2.1 billion over four years.
