Prime Minister Julia Gillard has rejected suggestions that her government liberally utilised the lure of money to win support among members of the Parliament for its legislative agenda.

Reacting on Wednesday to a report by The Daily Telegraph outlining her huge expenditures to keep independent MPs and the Australian Green Party under her wings, Gillard flatly denied any wrongdoings.

"The report is wrong in the details that I've just described," the prime minister declared.

Addressing the press in Adelaide, Gillard noted too: "They don't call it the silly season for nothing."

Gillard's government, according to The Daily Telegraph, had so far spent billions to convince its independent and Greens legislator allies to vote for controversial bills including the carbon pricing and the minerals resource rent tax.

The news report has alleged that much of the benefits, which came in the form of funds that bankrolled the regional programs of Gillard's non-Labor allies, were collected by independents Andrew Wilkie, Tony Windsor and Rob Oakeshott.

The three MPs were instrumental in allowing Gillard to keep the premiership following the close election results last year, votes of which gave the Labor control of a hung parliament.

Billions of taxpayers' money has been released to finance regional programs proposed by the Greens and other MPs who rallied behind Gillard's priority bills, the Telegraph said, enabling her government to push through with contentious bills such as the MRRT, the national broadband network and the clean energy measures.

Rising to her boss' defence, Federal Treasurer Wayne Swan stressed that government efforts to stimulate growth in regional areas of the country actually resulted to the mining boom, the benefits of which is now harvested by the nation, he added.

Swan also conceded that deals were made to push ahead with the economic programs of the government, which he asserted produced positive results for the country.

He pointed out that through the Labor government's sound policies, the jobless rate was kept at a manageable level, the cash rate induced growth and most importantly, Australia remained economically competitive despite many key economies losing their traction.

Australia has maintained its AAA credit rating while the United States and Europe either lost or were struggling to keep theirs, Swan stressed.

However, the Coalition criticised Gillard's apparent lack of resolve to go against her allies, resulting to unnecessary use of taxpayers' money that according to the Telegraph costs every Australians at least $65 each.

"Gillard's lack of courage to stand up to the Greens is costing taxpayers," the Coalition statement said.