"The fact Labor ministers, including Finance Minister Penny Wong, are refusing to rule out a $400 million funding cut to the National Health and Medical Research Council, confirm this is a live option," Shadow Minister for Finance Andrew Robb said today.

"Understandably, this is creating a great deal of stress and uncertainty within the research community, where important projects along with the jobs of highly-trained, talented and dedicated researchers are being threatened."

Access Economics has found that government funding for health and medical research delivers immeasurable rewards by improving health outcomes and reducing healthcare costs, which in turn deliver significant economic benefits.

"If you are a government which is serious about increasing productivity and helping people live longer and more productive lives, this is the last area in the budget you would be targeting," Mr Robb said.

"This is truly an anti-reform measure and comes at a time when Julia Gillard is both warning about managing our ageing population and uttering motherhood statements about increasing workforce participation.

"The Coalition has demonstrated that $50 billion in savings can be found in the budget without having to resort to penny-pinching in areas like medical research. This further demonstrates that the government has no clear plan for where it wants to take the nation.

"If this government had not wasted billions and billions of dollars on things like pink batts and overpriced school halls, they would not even have to contemplate cuts in these areas.

"Australia has a proud reputation in the area of medical research and innovation and it defies logic that this government would put that at risk. I call on Julia Gillard to have a serious re-think and immediately rule out the funding cuts," Mr Robb said.