Gallagher reveals more savings and reprioritisations in this year's budget

The agency which administers Centrelink and Medicare has been troubled by ballooning call wait times, and a backlog of of claims which had peaked at 1.35 million.

The Albanese government responded by announcing 3000 additional staff last year, though a commitment to reduce outsourcing has also seen its external labour workforce reduce by 4758 positions since the 2021-22 financial year.

The federal budget, due to be handed down on May 14, 2024, will have $193 million of its funding redirected to improving service delivery.

This will comprise internal efficiencies from redirecting resources from back-office functions to support front-line service delivery, as well as savings from lower staff turnover due to a focus on bringing roles back in-house.

On Saturday, Finance Minister Katy Gallagher announced further cuts to external labour would add up to $1 billion in savings by 2030.

In addition, the budget will include $3.8 billion in savings and reprioritisations across all 15 portfolios, though details have not yet been released.

Other changes have already been announced, including $22.5 billion in Defence project reprioritisations over the next four years.

The government has also found $441 million in savings by improving compliance and accuracy of its Child Care Subsidy program.

Unavoidable spending will add up to $15.4 billion, and will go towards health programs, infrastructure, veterans and public service capability.

It will fund a range of health programs which are due to end, including funding for palliative care, cancer supports, public health chronic conditions, and alcohol and other drug treatments.

Money will also go towards the fit-out of Western Sydney airport, continuing to fund the COVID-19 response, enabling the delivery of the Murray-Darling Basin Plan, and supporting veterans and aged care systems.

The troubled Home Affairs department will share in a portion of the funding, with boosts to address historic funding shortfalls, as will the myGov portal.

Money has also been set aside for staffing in Services Australia, the Department of Veterans Affairs and the National Emergency Management Agency.

Finance Minister Katy Gallagher said the Albanese government was focused on reducing inflation, while prioritising essential investments.

"[Our approach] is to reduce gross debt and identify responsible savings to take the pressure off inflation, while also continuing to make the investments Australians expect and clean up the mess left behind by the Coalition," Senator Gallagher said.

"Our budget decisions clearly demonstrate our priorities and presents the Opposition with a clear decision to make.

"Do they support the Albanese government's responsible and balanced approach to budgeting or are they going to come clean about what services they plan to cut?"