Significant problems are emerging on Australia's $4 billion offshore patrol vessel (OPVs) project as new government analysis reveals numerous other program delays that are placing surging cost pressures on the Defence budget.

The ABC can reveal the Albanese government is increasingly concerned with progress on the German-designed OPVs, including doubts about whether they will be adequately armed for the increasingly contested region they will be operating in.

OPVs are just the latest shipbuilding program to experience schedule delays, with this month's budget detailing how defence spending is expected to surge beyond the March projections of $80 billion a year by 2032, or 2.2 per cent of GDP.

In 2017 the Turnbull government selected Lürssen to design and build 12 OPVs, with construction to be shared between South Australia's Osborne shipyard and Henderson in Western Australia.

For the first time since the decision, the OPV project has been included on a list of at least 28 major defence projects considered to be running a cumulative 97 years late.

Other projects facing schedule delays are the Hunter Class Frigates, Battlefield Airlifters, Evolved Cape Class Patrol Boats, P-8A Poseidon aircraft, the Battlefield Command System and a series of Defence Satellite Communications projects.

Labor claims the previous government instructed Lürssen to find a way for the losing tenderer and WA based shipbuilder Austal to be included in the OPV project as a sub-contractor, leading to significant delays over a contract impasse.

COVID shutdowns compound issues

The ABC has learnt "seaworthiness" concerns have emerged on the first completed Arafura-class patrol vessel, due to problems meeting civilian safety standards, although the government believes other factors have contributed more to the program's overall delays.

"It's the Austal issue compounded by obtaining workforce due to COVID border shutdowns and mining industry competition," a senior government figure told the ABC.

Inside Defence there are concerns that the lightly armed Lürssen OPV may not be sufficient for the Indo-Pacific region where the military environment is increasingly contested, including the presence of China's maritime militia is growing.

"It's late, has next-to-no armament, a helicopter platform that is not strong enough for helicopters, it isn't seaworthy and there are safety standard issues," one figure familiar with defence department deliberations has told the ABC.

The government has yet to comment publicly on the schedule delays and problems emerging on the OPV project which could be reduced as part of the Defence Strategic Review that's due to report in March.

Alternatively, the government could face the invidious choice of attempting to shoehorn more weapons onto the small OPV platform, or purchasing a better suited and larger Corvette design, meaning existing OPVs would be transferred from the Navy to the Australia Border Force.

Albanese government to declare 'quality of spending' a priority

On Monday, the government will outline the budget pressures within the defence portfolio and key areas of concern with large military projects.

The Defence Minister, Treasurer and Defence Industry Minister will detail moves to strengthen the Defence Projects of Concern process by establishing an independent projects and portfolio management office within Defence.

In March the Budget projected defence spending as a proportion of GDP would rise from 2.0 per cent in 2021-22 to 2.2 per cent over the decade, with spending on defence to rise above $80 billion a year by 2032.