Coalition cuts aid, jobs to cover budget

The coalition's budget is under fire for cutting aid, public service and water buybacks. Source: AAP

AN Abbott government would cut foreign aid and Murray-Darling water buybacks, on top of scrapping the mining and carbon taxes to improve the budget and pay off some Labor debt.

Shadow treasurer Joe Hockey unveiled the coalition's election policy costings on Thursday, two days before Australians go to the polls.

While Opposition Leader Tony Abbott said the figures proved Kevin Rudd's claims of a coalition $70 billion black hole were just "hyperventilation," the prime minister remained adamant the cuts will damage Australia.

"The Australian people are left completely in the dark on how his massive cuts will hurt their jobs, hurt the economy and even risk the possibility of a recession," Mr Rudd said.

The coalition found $40 billion in savings over four years and would deliver a budget bottom line $6 billion better than Labor's and reduce gross debt by $16 billion.

But Mr Hockey didn't commit to Labor's timeframe for a budget surplus in 2016/17.

"The sensible savings are part of a carefully crafted plan for a stronger economy," he said.

"At the same time as cutting waste, the coalition will scrap the carbon and mining taxes, reduce the tax and red-tape burden on small business and deliver desperately needed roads, bridges and freight rail projects."

But aid groups were angered by plans to cut $4.5 billion over four years from foreign aid and development assistance and divert the funds to major road projects in Melbourne, Sydney and Brisbane.

"Mr Hockey may well wish to argue the economy will grow faster under a coalition, but his costings are at the expense of children's lives," UNICEF Australia chief Norman Gillespie said.

And the plan to "re-phase" Murray-Darling water buybacks to save $650 million over four years has angered South Australian premier Jay Wetherill who has accused Mr Abbott of walking away from the state.

"Tony Abbott has decided he can win this election without South Australia," Mr Wetherill said.

Greens water spokeswoman Sarah Hanson-Young said it would "devastate the lower Murray".

The coalition believes scrapping the carbon tax will add $1 billion to economic activity.

"Stopping the boats" will save a further $1 billion, although this assumption hasn't been endorsed by the Parliamentary Budget Office and is a coalition estimate.

On top of shedding 12,000 public service jobs, the coalition want more savings from the government sector and will seek a 0.25 per cent across the board saving - targeting advertising, consultancies and travel - to reap about $400 million.

Mr Abbott earlier said the cost of the coalition's broadband plan or Direct Action climate plan had been reassessed since their first release and he believed the figures - like those for other savings - were "bulletproof".

Mr Rudd said there would be more cuts from the coalition's proposed post-election commission of audit - which Mr Abbott says will "go through the whole of the administration".

A similar audit commissioned by John Howard in 1996 took $43 billion out of the economy.

The coalition looks set to win Saturday's election on a net gain of at least four seats and by as many as 20.

Mr Abbott asked voters not to support independents and minor parties.

"If you vote for an independent, a celebrity, or a minor party, effectively you are voting for another hung parliament and another circus. That's the last thing anyone should want," Mr Abbott said.

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