Public sector ‘to do more with less’

Thursday April 30, 2020 Written by Published in Economy

Government is promising a bigger stimulus in the next stage of the Covid-19 economic recovery plan. Finance Minister Mark Brown said he would double that to about $76 million when Parliament meets in June.

 

Phase two will focus on the 12 months to July 2021, paid for from the 2020/21 Budget. This will see likely increases in welfare funds, and capital projects, as the government seek to engage businesses.

Brown said he had instructed the heads of government agencies they will be focusing government expenditure on core services – at least for the next year or two.

“This means that government will place most new programmes on hold, and that we will be directing funds from some existing projects and services into other areas, or into funding the economic response.”

Brown also reiterated they had no intention to cut the government payroll. “There is an important reason behind this in addition to the economic impacts that this would have; the machinery of government must be intact to deliver core services.

“It is these services which underlie many of the necessary functions of society. But it is also these services which allows government to direct funding into households and businesses in the community.”

Brown said: “I will remind you that what we are doing here is economic stimulus – we are quickly filling some of the gap that is left by tourism, if we do not do this we will start to see the long unemployment lines that we are seeing globally on the news.”   

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