Listen Now: 
August 29, 2023
Ministries told to tighten up as tax take falls
Claudette Hauiti
Posted On August 29, 2023
The Government has asked the public service to cut baseline spending as it tries to save $4 billion over the next four years.
Finance Minister Grant Robertson says Government accounts for the eleven months to the end of May show tax revenue was more than $2 billion behind Treasury forecasts.
He says departments can save one or two percent off their baselines trhough measures such as cutting back on consultants and contractors.
With big spending projects like resource management law and health reforms, water infrastructure and the Covid response coming to an end there’s room to mvoe.
“In the immediate savings exercise, we’ve gone back to ministers and said are there funds that you haven’t used all of, or you haven’t got going yet, and we’ve put that together. What that means is there is a balance across a number of different elements. This will be a challenge for people nit it’s the right thing to do to get our books back into surplus,” Mr Robertson says.
Minister Robertson says no critical frontline staff will be affected by the cuts.
He says the money will all treated as savings – it isn’t being made available for new spending.
RELATED NEWS
