The federal government's mid-year budget review is designed to soften Australians up for bigger spending cuts next year, South Australian Premier Jay Weatherill says.
Mr Weatherill says the government is trying to create a sense of crisis to justify an agenda of deep cuts that will hurt ordinary Australians.
"And when they have a choice about their cuts, who gets it in the neck? Ordinary working men and women," the premier said.
He said South Australia would be particularly hard hit by the current round of cuts, which included confirmation of a $500 million reduction in assistance to the auto industry.
The mid-year review also budgets for an end to funding for trade training centres from 2014/15 and includes the withdrawal of funds to key public transport projects in Adelaide.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
Mr Weatherill said the budget update forecasts a $308 million deterioration in GST returns to the state across the forward estimates.
But he said that would not impact on the state government's plans for a return to surplus in 2015/16.
