The Budget Could See More Than 70 Government Agencies Scrapped Or Merged

Thousands of public service positions face the axe (Photo: Getty)

There have been more leaks in the lead-up to tomorrow’s federal budget.

The Australian says more than 70 government agencies could be scrapped or merged.

Those on the block include the Royal Australian Mint and Defence Housing Australia, which could be sold to raise several billion.

Cultural agencies such as the National Gallery and National Library could also be forced to merge their back office operations.

This would almost certainly lead to job losses. Earlier it was reported that thousands of public service positions could be axed as a result of the budget, with 3000 expected to go at the ATO alone.

Meanwhile, Treasurer Joe Hockey is expected to outline a “growth dividend” tomorrow, to prove his harsh budget measures will not derail the economy.

Hockey has not revealed how big the GDP bump — based on Treasury modelling — will be, though has ensured voters the big spending cuts and asset sales will be followed by “identifiable benefits” in the medium- and long-term.

“We will put in place immediately the mechanisms that will help to start to build a stronger and more prosperous economy,” he said.

“Treasury have modelled an improvement in GDP as a result.”

There’s more here.

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.