29 Aug 2023

Government told to cut 2 percent from baseline budgets

From Morning Report, 7:08 am on 29 August 2023

The public sector has been told it must cut up to 2 percent from its baseline budgets over the next 4 years.

The government is tightening its belt to making savings of around $4 billion in the public service.

That's over and above the $4 billion of savings included in May's Budget.

Public sector agencies have been told they must cut up to 2 percent, and spending on consultants will be trimmed by $165 million a year.

Some areas are off limits, such as superannuation, benefits and KiwiSaver; frontline health and education spending; the Defence Force, Police, and spy agencies, and the offices of parliament.

Prime Minister and Labour Leader Chris Hipkins spoke to Ingrid Hipkiss.