Its the right thing to do because its right for the economy. Savage cutbacks to achieve a political surplus is not what is required at this time.
I agree that it was poor politics and judgement for Gillard/Swan to push the surplus so hard. Incomprehensible really. However they imo will be banking on the surplus commitment issue becoming stale and it gives them the opportunity to present a tame election budget. Doesnt look like an early election will occur.
A major political setback for the government but the right thing for the country.