NZ Government to Cut Spending Further
April 24, 2010 New Zealand Finance
The New Zealand Government has announced that it will be cutting its spending by NZD 1.8 billion in the upcoming budget.
On March 22nd at a speech given at the Wellington Chamber of Commerce, Bill English, New Zealand Finance Minister, revealed that a further NZD 1.8 billion worth of public spending will be cut by the Government, in an effort to eradicate “lower quality government spending” and improve the national fiscal situation. The new cuts are slated to be executed in addition to the NZD 2 billion of spending decreases announced earlier.
The spending reductions are scheduled to occur throughout a four year time period and coincide with the introduction of a new Government-spending limit. Bill English indicated that some of the money that would be directed away from “low quality” spending would be transferred to “high priority” sectors. Indication was given that the health and education sector would see immediate benefits from the decision. Any unused funds would be utilized to lower New Zealand’s budget deficits in the next four years.
Indicating that similar spending cuts could occur in the foreseeable future, Bill English said, “…I think there will be a continuing sorting out of the public sector… there was a reduction of about 1500 [public sector] jobs in the last 12 months and I expect that process is likely to continue.” He also revealed that some public services could even be eradicated completely, though did not mention specific examples.
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