The South Australian government will slash the size of a contingency fund operated by the treasurer after criticising its use by the previous Labor administration.
Treasurer Rob Lucas says Labor used the fund to distribute $2.7 million in the nine months before the March election in what he's described as "outrageous pork barrelling".
He says the bulk of the money was used to support Labor MPs and candidates in Labor seats or seats Labor was trying to win.
"Whilst some of these projects and grants may have had merit, the secrecy and lack of transparency around the way the fund is expended undermines public confidence," Mr Lucas said on Tuesday.
"There are absolutely no restrictions on payments out of this fund as the treasurer is the sole decision maker."
The treasurer said the government would slash the contingency fund to just $500,000 a year, saving taxpayers almost $2 million over the forward estimates.
He said the government would also report annually on payments made out of the fund.
