By Robert Carry

The government is set to confirm the scaling back of a range of stimulus measures as the economy continues to show signs of recovery.

The Treasurer's mid-year economic and fiscal outlook (MYEFO), due for release today, is set to include unemployment predictions lower than previous forecasts.

Among stimulus measures set to be cut is the First Home Owner Grant, which is to be restricted to homes valued at less than $750,000 from 1 January 2010.

However, The Australian Financial Review quoted a government source as saying the report will "not be all good news" adding that "it will show we've still got a long road ahead of us".

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