As national cabinet begins to chart a cautious path out of the social distancing restrictions that have brought large parts of the economy to a virtual halt, leading economists are urging the government to commit to substantial stimulus to reinvigorate the economy.

But Prime Minister Scott Morrison said he was committed to the view that governments had to live within their means.

"That is the theme of every single budget that I've been involved with and that will continue to be the theme," Mr Morrison said.

The budget is due in October, weeks after initiatives like the massive $130 billion JobKeeper scheme and the enhanced JobSeeker program run out.

Many economists warn that a premature turn toward government austerity could stifle recovery and deepen the downturn.

Former Commonwealth Grants Commission chair Greg Smith told a Council for Economic Development Australia webinar that as the country passes through the emergency phase, the economic downturn will increasingly be driven by a large shortfall in demand as battered households and businesses pull back on spending and investment.

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He said addressing this would require a different set of policies than those enacted in the early stages of the crisis, and urged the government to focus on economic recovery before worrying about budget repair.

His concerns have been echoed by prominent US economist Joseph Stiglitz, who told an Australia Institute meeting of the risk of a very deep downturn if governments prematurely wind back their support.

Professor Stiglitz said it was increasingly likely that any recovery would be W-shaped, marked by continual setbacks.

"The concern I have, the way this is rolling out all over the world, is that it's a W. But the second part of that uptick isn't going to be there...unless we do something," he said.

"It is likely to be as or deeper than the Great Depression."

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