The Rudd Government's razor gang has axed $642 million worth of spending promises made in the final months of the Howard Government as its the first downpayment to slash the budget to fight inflation.

While it has promised to deliver in full the $31 billion in income tax cuts from July 1, other programs will be scrapped from next week, the Finance Minister Lindsay Tanner announced today.

Among the programs that will lose their federal funding are the Fishing Hall of Fame, the Australian National Rugby Academy, funding for an alternative water strategy at Melbourne's Flemington racecourse and the growing regions program.

The Government will no longer fund innovation ambassadors and the advertising program for simplified superannuation arrangements while spending on drought assistance and re-establishment assistance for farmers will be revised down.