New Zealand plans public-service reform to curb spending

Wellington (ANTARA) - New Zealand Finance Minister Nicola Willis said in her speech that the government plans to reform public services to curb the budget. Willis said the country would reduce the number of government departments, increase the use of artificial intelligence (AI) and a range of other digital tools, and cap agency spending through a sinking lid strategy (a policy aimed at gradually reducing the amount or quota until it eventually reaches zero or a minimum specified limit) on operating budgets.

The plan targets reducing the number of core public service staff to around 55,000 by mid-2029, down from more than 63,000 currently, Willis said.

New Zealand’s Minister for Public Service and Government Digitalisation, Paul Goldsmith, said the pace of administrative growth was ‘almost three times faster than the overall workforce.’

‘Reductions will be carried out gradually over several years through digitalisation, mergers, simplification of systems and processes, and natural attrition,’ Goldsmith said.

He added that the move would not affect teachers, health workers, police, or defence personnel.

‘Am developments will be monitored regularly, with agencies expected to demonstrate improvements in productivity, delivery, and budget efficiency,’ he told reporters.