OTTAWA - The federal budget watchdog expects the budget the Harper government is going to hand down on Tuesday will show a significant surplus.

The parliamentary budget office says the government will post a 3.4-billion-dollar surplus in 2014-15 -- a full year ahead of schedule.

In its November fiscal update, the government had predicted a 2.9-billion-dollar shortfall in 2014-15.

The budget office says it expects the government to post a surplus next year as well.

But it's predicting a return to deficit spending in 2017, due in part to tax cuts and lower  employment insurance premiums.