New Zealand's public sector has a large role to play in the
recovery of the economy from recession and Finance Minister
Bill English made it clear yesterday that hard work already
started needed to continue.
Mr English said in his Budget speech that the 2009 Budget
significantly increased operating funding and capital
investment for public services.
"However, the public sector must consider how it will adapt
to tighter budgets and smaller or no increases in the
future."
Public sector chief executives were already identifying how
to deliver services more efficiently.
Considered decisions now would avoid harsher decisions later,
he said.
Line-by-line departmental reviews had freed up $2 billion
over the next four years that would be put back into
Government priorities such as boosting front-line services.
A combined $454 million had been identified in the remainder
of this financial year and 2009-10, with more than $500
million by 2012-13.
That money would be used for priorities such as more police,
more probation officers and training more doctors and nurses.
The $500 million represented less than 1% of total Government
spending of $65 billion and was on top of the $1.45 billion
increase in operating spending announced in the Budget, Mr
English said.
One of National's election commitments was to slow the rate
of Government spending increases and focus on front-line
public services.
"We want better, smarter public services with little or no
extra funding. This is the first step in an ongoing process
to ensure Government spending is effective and goes on the
right things."
Savings had been put back into new policy priorities in
education, social development, overseas development
assistance and the Ministry of Foreign Affairs and Trade.
The reviews had started the process of improving the quality
of Government spending, he said.
"The real gains will come from making sure that there's a
continual focus on innovating and finding better ways of
delivering public services right across Government."
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