The Prime Minister has refused to rule out spending cuts to nursing as more clues to the upcoming budget take shape.

Kevin Rudd and his razor gang are scrambling to cut the Government's spending in a bid to fight off inflation.

Now their sights have turned back onto the aged-care sector, as rumours grow of massive cuts to nursing homes.

Around $120 million earmarked for quality of life programs like bingo and exercise classes could be slashed.

Industry groups say there's no justification for the move, Mr Rudd has deflected questions on the issue, saying everyone will have to wait and see on May 13.

The Prime Minister's refused to rule out the measure and Shadow Aged Care Minister Margaret May says it's heartless.

“It’s a mean trick to play on the aged-care sector, and I think the Prime Minister and his government needs to re- look at what they are doing with the aged-care sector in the country.”

Source: LiveNews - Yoni Bashan