South Australia Health Department Chief Executive Dr. Tony Sheldon submitted to the Budget and Finance Committee on Monday his agency's proposed budget cut of $450 million that is expected to eliminate 4,000 jobs.

The budget cut equivalent to 10 or 11 percent of the state's health budget was ordered by the Sustainable Budget Commission.

Sheldon said the budget cut will affect hospital and out-of-hospital clinical services, but hopes that the figure will still go down.

Meanwhile, the chief executive said the department continues to implement cost-saving measures ordered by the previous government. The measures is expected to generate up to $100 million in savings.