Argy-bargy over audit office budget cuts

Treasurer Scott Morrison intervened to stop the auditor general from briefing a parliamentary committee on upcoming budget cuts because of secrecy rules.

The audit office's budget was cut by $690,000 this financial year and by under a $1 million over four years.

The public accounts and audit joint committee is legally required to consider the auditor general's budget and resources on behalf of parliament.

Committee deputy chair and Labor MP Julian Hill is upset MPs did not receive an accurate figure ahead of the budget and said the auditor general "was placed in a terribly difficult, impossible, position".

"I feel aggrieved that I was not informed of the true situation," he told parliament.

The audit office intends to carry out 48 investigations this financial year.

It will seek Finance Minister Mathias Cormann's permission to operate at a loss in the event that its costs exceed existing resources.

"This is an extraordinary situation and I am not aware of any precedent," Mr Hill said.