Nick Xenophon has flagged the prospect of cuts to health spending to pay for his SA Best party's election promises.

Along with Upper House candidate Sam Johnson, the SA Best party leader unveiled a 'royalties for regions' policy, aimed at funding new infrastructure and programs in the state's regional areas.

It includes diverting 30 per cent of mining royalties to regional projects, a $30 million telecommunications fund and a $15 million regional entrepreneurs program.

When pressed on how his party would pay for its promises, the former senator pointed to the state's health budget.

"We will get savings through greater efficiencies particularly in large spending departments," he said.

"If there's a significant roadwork that needs to be done we want to make sure it's done efficiently and well.

"The health budget, at $5.9 billion, if you look at the overall expenditure, is one of the most significant areas where there are savings."

But he ruled out cuts to public servant numbers.

"Cutting public servants is not the answer. The answer is to have government working better."

Mr Johnson said the scheme was not about spending money on maintaining country roads but about investing new money in regional areas.

"We're not trying to substitute the DPTI balance sheet by saying we're going to create this fund and then we're going to go and do what governments should be doing, which is maintaining country roads," Mr Johnson said.

"We'll do that, but our royalties for regions policy is about investing some new money back into our regions."