Thousands of jobs will be cut in the federal public sector after the government announced more ‘efficiency dividends’.

Treasurer Scott Morrison’s first Budget includes $1.9 billion in cuts, with extended ‘Efficiency Dividend’ to eliminate 3,000 and 4,500 more public sector jobs.

It adds to the 18,000 job cuts that the CPSU says have already happened.

Community and Public Sector Union (CPSU) secretary Nadine Flood condemned the savings measures, saying that; “Across-the-board funding cut will inevitably lead to thousands more workers losing their jobs”.

“This Budget means more public sector jobs are on the chopping block, and that ordinary Australians should prepare for the public services they rely on to go further backwards.”

While more efficiency dividends were not unexpected, the $1.9 billion size of the extension will send some threadbare departments finding more to cut.

The Department of Human Services is expected to have to cut about 800 jobs, to find savings of about $80 million.

“There’s nothing innovative about 22 million calls to Medicare, Centrelink and Child Support going unanswered last year, with more public service cuts to come,” Ms Flood said.

Shadow assistant treasurer Andrew Leigh said the dividend hike would do damage.

“They're again embedding a higher efficiency dividend, with the efficiency dividend going to 2.5 per cent in a couple of years,” he said.

“Again that demonstrates that the Liberals just don't care about Canberra and don't have a long-term vision for the future that sees a strong public service as an integral part of a great Australia.”

The CPSU accused the Turnbull government of “disguised” efforts to bring back widespread public sector outsourcing and privatisation.

But a plan to get the private sector to undertake $30 billion in Medicare payments and processing appears to have been shelved.

The scheme was a centrepiece efficiency measure announced in the Abbott government’s National Commission of Audit, but has scarcely been mentioned in recent months.

The budget included no respite for top national institutions, the National Library and the National Gallery, which were already struggling to find savings.

Both say they may have to lose some jobs and services without supplementary funding.

The National Library will lose the funding equivalent of 28 full-time positions, the National Gallery will lose the equivalent of 20 jobs, and the National Film and Sound Archive, 12 positions.