Families to be hit by govt savings: Abbott

OPPOSITION Leader Tony Abbott says families will be hit by federal government savings revealed in the mid-year budget update.

Mr Abbott said Labor's economic management was a failure, as shown by its "incredible shrinking budget surplus".

"This is a government that will never, ever deliver an honest budget surplus," he told reporters in Canberra on Monday.

"Families have been hit."

In the mid-year economic and fiscal outlook (MYEFO) released on Monday, Treasurer Wayne Swan pared back the projected 2012/13 budget surplus to $1.1 billion, from $1.5 billion in May.

He also announced changes to the baby bonus and the private health insurance rebate scheme, as part to a plan to generate $16.4 billion of budget savings over the four-year estimates period.

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