Apr 5, 2012

Despite public service cuts, there will be public service growth

When the budget comes down, I doubt that the size of the cuts in total will be quite as high as is currently forecast, writes Stephen Bartos, public policy and governance expert and ACIL Tasman director.

Normally we could dismiss reports of coming public service cuts as budget speculation. What is different today is that the cuts are already being implemented in several departments including climate change, resources, and education.

There is more behind these cuts than the additional 2.5% efficiency dividend (on top of the existing 1.5% annual cut to departmental expenses) already announced in the mid-year economic and fiscal outlook. If that were the only influence, then cuts of the size being implemented at present would not be needed.

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One thought on “Despite public service cuts, there will be public service growth

  1. Jenny Haines

    I see the hand of Sir Humphrey Applebee at work.

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