"The allegation is wrong and mischievous. It suggests that government cannot consider austerity measures in relation to media buying," Kodwa said, adding: "Government has a right cut costs where it can."

The Mail&Guardian reported on Friday that the government intended implementing a plan to "starve" the Sunday Times, Mail&Guardian, and City Press of advertising worth millions of rand.

An unnamed government official was quoted as saying the three newspapers had been sustaining "an anti-ANC and anti-government onslaught" on the "democratic state".

The newspaper reported that the biggest beneficiary of the switch in advertising would be Independent Newspapers, under the ownership of Iqbal Surve.

Kodwa said austerity measures were announced during former finance minister Pravin Gordhan's term of office.

He said the government had undertaken to cut wasteful expenditure and spend less on non-essentials.

"That began long ago. The allegation can't be made now."

Kodwa said the accusation that the three newspapers were being punished was false.

"We are a democracy. We even support those that disagree with us. It is not so that this is because of punishment. Our government will never take such a position," he said.

"But government has a right to cut costs in terms of value for money, under austerity measures. There is also nothing wrong if government consolidates media buying-power."