Federal Health Minister Tony Abbott has rejected a call by the Australian Medical Association (AMA) for a doubling in funding for Indigenous health.

A Productivity Commission report out today paints a bleak picture for Aboriginal Australians. The report says Aboriginal Australians are more likely to drop out of school, go to jail, smoke and live in poverty.

Mr Abbott says there will be an increase in funding in the next Budget, but he says the Government cannot double its contribution.

"I don't think it's realistic to suddenly more than double Indigenous health spending and think that you are suddenly going to get results which are twice as good," he said.