Delivering public services within tight financial constraints

The Government is committed to getting better results and better value for money from the public services it funds. Ultimately, that benefits New Zealanders who are collectively both the users of public services and the taxpayers who fund them.

The public sector represents a quarter of New Zealand's economy and has a big influence on how our society and economy perform. Public agencies are developing new and different ways of working together with little or no extra resources to deliver better results for New Zealanders.

To reinforce the Government's expectations, the Prime Minister has set 10 challenging results for the public service to achieve over the next five years. They include reducing crime, reducing long-term welfare dependency, boosting skills and employment, and reducing educational underachievement. Cabinet has also established leadership teams of ICT, property and procurement to support better value across government functions.

Table 3 - Better Public Services: Results for New Zealanders

Reducing long-term welfare dependence

1. Reduce the number of people who have been on a working age benefit for more than 12 months.

Supporting vulnerable children

2. Increase participation in early childhood education.
3. Increase infant immunisation rates and reduce the incidence of rheumatic fever.
4. Reduce the number of assaults on children.

Boosting skills and employment

5. Increase the proportion of 18 year olds with NCEA level 2 or equivalent qualification.
6. Increase the proportion of 25-34 year olds with advanced trade qualifications, diplomas and degrees (at level 4 or above).

Reducing crime

7. Reduce the rates of total crime, violent crime and youth crime.
8. Reduce reoffending.

Improving interaction with government

9. New Zealand businesses have a one-stop online shop for all government advice and support they need to run and grow their business.
10. New Zealanders can complete their transactions with the Government easily in a digital environment.

Delivering on these results, and the individual targets that lie under them, will stretch the ability of government departments. It will require them to work together in areas that lie across or between the responsibilities of individual agencies and to work collaboratively with Crown entities, non-Governmental organisations (NGOs) and the private sector.

Budget 2013 will show what actions are being taken to achieve these targets.

It will also confirm allocations for government spending. Spending in the biggest areas of health, education, welfare and law and order is expected to total around $54 billion in the next financial year. As in previous Budgets, the priority for new spending will be given to health and education.

Most other areas of government spending will be expected to remain within existing baselines. In addition, government departments and other agencies will together deliver efficiency savings of $1 billion over three years, as announced in Budget 2011.

Delivering high-quality public services within tight budgets will require continuous improvement and innovation in service delivery, good cost control and an ability to reprioritise spending to get the best results and support frontline services. The Government's previous four Budgets have freed up around $13.4 billion of savings to put into boosting frontline services.