State governments are in virtually open revolt over the hand they were dealt in the latest federal Budget.

Speculators say the Federal Government has ripped $80 billion out of health and education funding to the states in order to force them to push for a GST increase.

Treasurer Joe Hockey says the states would have to make the first move.

“We said that the only way there would be changes to the GST would be if we took it to an election,” Mr Hockey said.

“Now the states get every dollar, every single dollar, from the GST. It’s up to them to argue the case for changing the GST.”

Prime Minister Tony Abbott has told the thoroughly incensed state and territory leaders that they are adults, and as such need to fund their own health and education systems.

But with funding mechanisms already unbalanced, some states say the move can only increase disparity. A breakdown of the percentages received appears at the bottom of this page.

This comes just two weeks after the premiers and chief ministers met with the Prime Minister for a Council of Australian Governments (COAG) meeting in Canberra, where they spoke largely about future tax reform.

The state leaders say the $80 billion shake-down has been an ambush on their stretched economic situations.

Mr Abbott is reportedly refusing to convene an emergency COAG meeting, and so the states appear to be setting up an unofficial gathering.

ACT Chief Minister Katy Gallagher says the Territory has been unfairly slugged by the Budget, which will see many thousands of Canberra’s public sector workers without a job.

“Whatever way you look at this, this one's going to have a lasting and ongoing effect on Canberra and Canberra's economy... this is a very bad budget,” she said.

Northern Territory Chief Minister Adam Giles has welcomed the increased responsibility over school services particularly, but on the topic of a GST hike said; “I'll fight against it.”

Queensland Premier Campbell Newman says the Federal Government clearly wants those lower levels to push for a GST hike.

NSW Premier Mike Baird accused the government of outsourcing its hard decisions, decrying the economic “kick in the guts to the people of NSW”.

Victorian LNP Premier Denis Napthine was wary of the big hit.

“We don’t want a situation where the state is putting funding in to improve educational opportunities and educational facilities… and having that undermined by reduction of funding from Canberra,” Dr Napthine said.

WA, SA, Tasmania have pitched their concerns, all expressing discontent at the damage to health and education.

South Australia's Labor Treasurer Tom Koutsantonis has unleashed on the Federal tactic.

“What Treasurer Hockey is doing is manufacturing a crisis for healthcare and education, starving states of funding that they've relied upon to bring them to the table on their knees to get an increase, and broaden the base on GST,” he told the ABC.

"What Joe Hockey is basically saying to South Australians is 'You're on your own. If you've lost your job at Holden you're on your own, if you're sick you're on your own, if your kids are in school you're on your own, but we'll build you two new roads'. I have to say I think Mr Hockey has got his priorities horribly wrong."

Tasmania's new Liberal State Growth Minister Matthew Groom showed some caution.

“This budget is less than 24 hours old. We've got to work through this carefully, we've got to be mature and sensible,” he said.

West Australian Premier Colin Barnett says the cuts will clearly hurt – as his state already receives a lesser slice of tax.

“There'll need to be some sort of adjustment to Commonwealth payments to states in those areas, otherwise we'll face problems,” he said.

Currently, each state receives an uneven chunk of the total GST pool, determined by the independent Commonwealth Grants Commission.

State

2013/14 GST share (%)

New South Wales

30.9

Victoria

22.6

Queensland

21.5

Western Australia

4.9

South Australia

9.1

Tasmania

3.6

Australian Capital Territory   

2.0

Northern Territory

5.4