Kevin Rudd and his senior ministers held fake pre-budget meetings as a precaution against the possibility of plans being leaked by former finance minister Lindsay Tanner.
The Sydney Morning Herald reports some meetings with Mr Tanner would deliberately be light on detail, because others in the so-called 'gang of four' were so suspicious of him.
It says once Mr Tanner left, the Strategic Priorities and Budget Committee's remaining members - Mr Rudd, Julia Gillard and Wayne Swan - would reconvene and discuss their plans in detail.
There was no evidence Mr Tanner ever leaked anything, but the Herald reports departmental sources saying the tactic was motivated by suspicions he was behind the leaking of budget stories early in the Rudd Government.