Steven Joyce: Former Finance Minister on the cutbacks to public spending, the drastic cut to the operating allowance

The Mike Hosking Breakfast

A former Finance Minister says cutbacks to public spending need to be seen in context.

Finance Minister Nicola Willis has confirmed a drastic cut to the operating allowance in next month's Budget, from $2.4 billion to $1.3 billion.

There will be no new funding for most Government departments, with the focus being on priority areas and paying off debt.

Steven Joyce told Mike Hosking there's still scope to reduce spending.

He says Government spending has doubled in the past eight years while inflation has only gone up about 30% in the same time.

Joyce is also saying there's growing public appetite for more public sector restraint.

The Government's ruling out giving most departments any additional funding in the next Budget, but Joyce says reaching that target will depend a lot on the international economy.

However, he told Hosking there are still lots of changes that can be made to bring down government spending.

Joyce says making those changes requires a bit of work and requires ministers having a good political radar and knowing what can't be cut.

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