Warren Mundine sets priorities for looming budget cuts

The Abbott Government will hand down its first budget cut in May, and speculation has already begun on how Indigenous people will benefit.

Indigenous organisations and peoples await the next budget to see what will happen to their funding after massive cuts last year.

In 2013, $1.6 billion in funding was allocated to the Indigenous sector.

The Labor Government said the money would be used to extend employment programs, fund community and legal services, and improve services in remote communities.

The Prime Minister's Indigenous Advisory Council has been discussing potential budget cuts in recent meetings.

Head of the Council, Warren Mundine said spending on education and employment needs to be prioritised.

Professor John Altman from Australia’s National University said the government should focus to improve the welfare of Indigenous Australians.

“Some of the bureaucratic processes are very inefficient so we've got no idea what proportion of the Indigenous spend is actually getting to Indigenous people in need," he said.

"What we do know is that there is a very cumbersome machinery soaking up a lot of the funding,” said Mr Altman.

The budget will be handed down during the month of May.