Government departments face a tough few years and have been
told they must lift their performance with no extra funding.
The pressure on them would be constant, Prime Minister John
Key said yesterday.
"Most agencies will see no additional funding for several
years," he said in his speech to Parliament.
"They will therefore need to make enduring and significant
changes to the way they operate, including reorganising their
back office administrative functions, making better use of
technology, exploring innovative options for delivering
services and sharing support services with other government
agencies."
Mr Key said the savings drive that began last year would
continue while stronger performance was demanded.
"We began last year by capping core government administration
and by conducting a line-by-line review of expenditure as
part of the 2009 budget," he said.
"That review identified a total of more than $2 billion in
spending over four years that was redirected to frontline
services.
"That was not a one-off exercise."
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