http://au.news.yahoo.com/latest/a/-/latest/16189673/vic-hospital-dispute-a-disas...

Opposition Leader Tony Abbott says a coalition government would like to reverse funding cuts to Victoria's health system but can't make a commitment until it knows what fiscal position it will inherit.

"It's a disaster that will tragically be in place before there can be a change of government," he told Fairfax Radio on Wednesday.

Mr Abbott said the coalition would like to reverse the cuts if it was elected but that would depend on fiscal circumstances.

"Until we've seen the final budget figures it's difficult to give a commitment," he said.

"My firm intention, whenever we are looking for savings, is to look for savings in the bureaucracy rather than to inflict savings on frontline services.

"I'd be surprised if we couldn't do just as good a job with fewer public servants in Canberra."

Victorian Health Minister David Davis has accused the federal government of using an incorrect estimate of Victorian population figures to cut $475 million from the state's health budget over four years.

But Federal Health Minister Tanya Plibersek says commonwealth funding to Victoria is increasing by $900 million over the next four years and Victoria has taken more than $600 million out of its health system.

Mr Davis has maintained the federal government should have used Australian Bureau of Statistics (ABS) population growth estimates of 1.4 per cent for 2010-11.

Instead, it used flawed figures of just 0.3 per cent over the same period, he said.

Australian Greens health spokesman Richard Di Natale said he was not surprised by the backflip, which came on the eve of a Senate inquiry into the funding disputes with Victoria and Queensland.

Senator De Natale successfully pushed for the inquiry earlier this month. It will hold its first hearing in Melbourne on Thursday.

"Instead of standing up to the mining companies and raising money through a decent mining tax, the federal government tried to get away with ripping money out of the hospital system by blaming it on the states," Senator Di Natale said in a statement.

"I expected the government was set to be embarrassed by some damaging testimony tomorrow.

"While I am pleased that the funding has been restored, it is a real shame that it took this kind of pressure for the government to take responsibility."