Mathias Cormann defended Tony Abbott's "no cuts to the ABC and SBS" pre-election promise, saying the Prime Minister told the truth and they were not cuts but efficiency dividends.

The Communications Minister on Wednesday detailed a $254 million funding cut to the ABC, which means the national broadcaster will receive $5.2 billion over four years, rather than $5.5 billion. The SBS will also have its budget cut by $25.2 million.

Reduced funding: Financce Minister Mathias Cormann says the ABC is not having its funding cut, it is facing an efficiency dividend, Credit:Alex Ellinghausen

When asked about Mr Abbott's pre-election comments, Senator Cormann said "well, they're not cuts".

"The Prime Minister absolutely told the truth. We are not making cuts. What we are making sure happens with the ABC is what happens with every other taxpayer funded organisation across government and that is to ensure that it operates as efficiently as possible," he said.