Julia Gillard will raid $448 million from a savings scheme meant for the development of IT projects to help pay for election commitments.

Labor said that its plan to drive efficiencies in public sector ICT procurement and operational reform would save more than $1 billion over four years.

Peter Gershon, an efficiency expert, was t

asked with spearheading the program in 2008. With his recommendation, more than half of the savings were directed into an IT reinvestment fund.

The Prime Minister, aiming to help meet Labor's commitment to returning the budget to surplus, will divert $447.5m of the money being set aside over the four years for the goal.

About $54.6m from the Gershon reinvestment fund was spent on 12 projects from 2009-10. If Labor is victorious during the elections, departments will be required to bid for funds for proposed IT projects.