CANBERRA - Australia's Foreign Minister Julie Bishop launched a new program on Monday aimed at changing the way Australia contributes aid money to poorer nations.

But the initiative was overshadowed by reports that Treasurer, Joe Hockey, was planning to announce further cuts to the foreign aid budget ahead of May's federal budget.

News Ltd reported on Monday that Hockey wanted to impose further cuts to a foreign aid budget that has already suffered significant funding decreases since the conservative government came to power.

Since 2013, Australia's foreign aid budget has been cut by $8.56 billion, but Bishop said on Monday she wasn't aware of any proposed changes and she was confident that the "foreign aid budget will continue in its (current) form".

"I'll certainly be taking that (report) up with the Treasurer," Bishop told the ABC on Monday. "I believe we have (the balance) about right."

The new program, called InnovationXchange, will gather crucial data which will help experts determine which areas need aid money the most, and how to best stretch the aid dollar.

The Australian government allocated $109 million over four years to the cause, and Bishop was "delighted" to launch the program that could benefit millions of those most in need.

She said that the previous way of delivering aid money was old fashioned, and that this new approach would help communities quickly and effectively.

Bishop said the exciting link with field leaders will keep Australia up-to-date will all progress in the respective fields.

Earlier on Monday, Bishop rolled her eyes at Hockey's mention of the budget 'razor gang' in parliament.

The federal treasurer was praising the late prime minister Malcolm Fraser for being the "great initiator of the expenditure review committee", better known as the government's razor gang.

The cabinet committee is in charge of finding budget cuts across the government and has in the past taken a blade to the foreign aid budget.

Hockey said the committee had endured "much to the chagrin of my colleagues".