Māori Development Minister Willie Jackson accused ACT leader David Seymour of dog-whistling for the right-wing vote.
In its alternative budget ACT is proposing axing several government Ministries -- including the Ministry for Maori Development.
It also is proposing a wide range of cuts and an increase to the superannuation age to achieve tax cuts and return the government to surplus within a year.
Jackson called Seymour a "useless Māori" to media in response to the proposed budget.
He spoke to Corin Dann.
David Seymour was invited to respond to the comments on Morning Report, but he declined.