Shorten challenged to find budget savings

The federal government says the Labor leader needs to show in his budget reply how he would find the necessary savings to balance the books.

Finance Minister Mathias Cormann (L) has challenged Bill Shorten to present an alternative budget. (AAP)

Finance Minister Mathias Cormann has challenged Bill Shorten to present an alternative plan for the budget and economy.

On Thursday night the Labor leader will deliver his budget reply speech to parliament.

"He will have to show us the money ... because right now Labor has a $52 billion budget black hole," Senator Cormann told reporters in Canberra.