The funds were allocated in Thursday's mid-year budget update to "decisions taken but not yet announced", including almost $5.6 billion in the next financial year alone.
It puts the Liberal-National coalition government in the position to roll out big ticket election promises.
Treasurer Josh Frydenberg used the economic update - potentially the last before the 2022 federal election - to spruik Australia's economic position amid a falling unemployment rate and the projection of one million extra jobs.
"There is a contingency reserve. There are decisions taken but not yet announced," Mr Frydenberg said.
"And that has been consistent with previous budgets by both sides of the political divide."
Finance Minister Simon Birmingham said COVID-19 pandemic showed the need for prudently setting aside money to deal with unforeseen circumstances.
Shadow treasurer Jim Chalmers labelled the allocation a "secret slush fund" that would go towards "more rorts and waste" in the lead-up to the election.
Dr Chalmers also said the coalition had a predisposition to over-promise and under-deliver on wage growth, falling short of 52 out of 55 wage projections while in office.
"It's not a recovery if people are still getting absolutely smashed by the rising costs of living combined with falling real wages," he said.
The government was already under fire over the alleged misuse of public money.
The analysis of 19,000 grants totalling $2.8 billion by the Nine newspapers revealed that $1.9 billion went to coalition seats over three years - four times the amount of money in grants than Labor-held seats.
Mr Frydenberg said grants programs had "always been around".
"There are proper processes and the ANAO (auditor-general) has scrutiny over the program," he said.
Addressing reporters in the Sydney suburb of Ashfield, Labor leader Anthony Albanese said two suburbs separated by a road were indistinguishable to the community, but the electoral boundaries meant one side received more than 20 times more in grants.
"For this government that looks at the electoral map, they are very different in terms of the approach," he said.
The marginal Liberal-held seat of Reid received $14.8 million in grants over three years, compared to $718,000 in Mr Albanese's neighbouring seat of Grayndler.
"You pay the same rate of tax on that side of the street and this side of the street. That is why this is corrupt" he said.
Prime Minister Scott Morrison spent the day on the NSW Central Coast, where he announced his rejection of a controversial petroleum exploration permit known as PEP-11.
The decision comes as moderate Liberal MPs try to fend off serious challenges from high profile independents running on a pro-climate action agenda.
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