22 Dec 2009

Budget bids for 2010 already decided

3:55 pm on 22 December 2009

The Government has already determined the spending of its departments for the next financial year, months ahead of the 2010 Budget.

The Finance Minister, Bill English, says all departments should know how much money they have available to spend over the next 18 months.

Usually, the process departments follow in making Budget bids for new spending would last well into February. However, with the Government having clamped down on spending, it has been able to make decisions earlier about departmental budgets.

Mr English says that means departments now need to focus on how they do their job well with the same amount, or even less money.

He says work will now focus on tax changes and other initiatives being considered as part of the Budget to help lift economic performance.