The budget in Australia on Tuesday will reportedly see 50 federal government agencies abolished, key assets sold and public servants axed.

Photo: AFP (file)

Following the dismantling of 40 government bodies last year, Fairfax Media reports Treasurer Joe Hockey will target 50 others to achieve a combined four-year saving of $A470 million.

The Australian Financial Review says the government will also put other agencies on notice in foreshadowing deeper consolidation later in the year.

Those earmarked for abolition now range from the Albury-Wodonga Development Corporation, to the Australian Governments Reform Council.

The paper says a decision has also been made to privatise the Royal Australian Mint, the Australian Securities and Investments Commission corporate register, Australian Hearing and Defence Housing Australia.

The budget will also announce the axing of 16,000 federal public servants instead of the government's pre-election target of 12,000 positions.

The Australian newspaper reports the cuts will be even more extensive, with 70 agencies slated for abolition including the Renewable Energy Agency and the National Water Commission.

It says the National Gallery and National Library will also be forced to merge their backroom administrations.