Delivering Better Public Services within Tight Financial Constraints
A better-performing State sector is central to the Government's plans over the next three years. The Government wants to see better results and improved services from the State sector, as well as reduced costs and more efficiency.
As shown in Figure 3, new operating allowances are a small fraction of total core Crown expenses compared to the base of existing spending, much of which is in areas such as health, education and welfare. The Government is committed to controlling fluctuations and reducing pressures across all areas of existing spending, while continuing to improve public services.
- Figure 3 - Core Crown expenses
- Source: The Treasury
Budget 2012 identifies savings of $3 billion, which are being used to fund higher priority areas of spending. This builds on the past three Budgets which collectively committed to savings of $9 billion over five years, which were also re-invested in public services.
Government departments have prepared four-year budget plans based on an indication of their future funding. In most cases that means no extra money. In addition, government agencies together have been asked to find almost $1 billion in savings over three years.
This has driven a number of changes in behaviour in the State sector. Government agencies have, for example, been jointly purchasing supplies such as vehicles, office supplies, air travel and legal services. Agencies have also been working together to share corporate services, like finance and human resources.
At the same time, the Government is focusing very strongly on achieving better results. Earlier this year the Prime Minister announced 10 key results for the public sector to achieve over the next three to five years. The results fall within five themes: reducing long-term welfare dependency; supporting vulnerable children; boosting skills and employment; reducing crime; and improving interaction with government. Measurable and stretching targets will sit underneath each result.
This focus on results is part of a wider programme of public sector reform - the Better Public Services project - which includes:
- government agencies working more closely together, sharing functions and services and developing joint systems
- more contestability in service provision and use of alternative providers
- greater use of technology and a shift to digital channels, so New Zealanders can more easily access public services
- agencies collecting, using and publishing better performance information, and
- a greater responsiveness to the needs and expectations of New Zealanders.
