Source: The Melbourne Age

There's no way on God's earth Prime Minister Kevin Rudd is going to leave pensioners and carers in the lurch, deputy prime minister Julia Gillard says.

Echoing her leader, Ms Gillard repeated Mr Rudd's comment from last week when he sought to hose down stories that pensioners and carers were on the government budget hit list.

"What the prime minister has most clearly said is that carers and pensioners will be able to judge the budget on budget night," she told ABC Radio.

"But there is no way on God's earth he is going to leave them in the lurch.

"I can say exactly what the prime minister said which is 'we understand the contribution carers make in this society. We understand that people rely on their old age pension and there's no way in the world that we are going to leave them in the lurch'."

Beyond that Ms Gillard refused to comment further.

"We don't speculate on or comment on budget preparation. It's obvious why we don't do that. The budget is in preparation and it will be announced on budget night," she said.

Mr Rudd last week promised not to slug carers and pensioners, despite reports the government may scrap $500 bonus payments to older Australians.

The one-off payment was introduced by the Howard government to help over-65s - a core coalition constituency - meet rising costs.

Suggestions the bonus payments could be scrapped followed an outcry a day earlier at claims the government may be preparing to abolish the $1,600 carers' bonus.

Labor has made no secret it intends to cut spending in the May budget as part of its drive to bring down inflation.

Ms Gillard said what took priority was getting waste out of the government budget and fighting inflation by eradicating unnecessary spending.

She said, for example, the Howard government devoted billions of dollars to unnecessary government spending, including advertising.

"Let's look at how much they wasted on Work Choices. I am still getting rid of the pens and the mouse pads and all; the rest of the paraphernalia that taxpayers paid for. So we will be getting rid of waste," she said.

"It will be a tough budget. Both Wayne Swan and Lindsay Tanner have said we will take a very rigorous approach. We have got to fight inflation because inflation is bad for everyone."

© 2008 AAP