Media Release

19/2010
11 May 2010

Budget Delivers More than $1.2 Billion in Efficiencies from Government Operations

Improving the efficiency of government operations has delivered $1.2 billion in savings in the 2010/11 Budget.

Lindsay Tanner, Minister for Finance and Deregulation said that since elected, the Rudd Government had achieved savings of more than $8.5 billion from reducing waste and inefficiency.

“The Government has set a tight fiscal strategy to ensure the budget is returned to surplus as quickly as possible. A key part of this strategy is the ongoing pursuit of efficiency in government operations.”

“Our record in finding these savings stands in stark contrast to the Howard Government’s poor effort on savings.”

The efficiency improving initiatives in the 2010-11 Budget include:

• New arrangements for the provision of domestic and international air services and Travel Management Services to the Australian Government which will deliver more than $160 million in savings to the Budget over the next four years.
• Introducing streamlined processes for job seekers and Disability Support Pension claimants undergoing Job Capacity Assessments. This reform will generate efficiencies of $387.7 million over four years.
• Rationalisation of management of the Inclusion Support Subsidy (ISS) element of the Child Care Services Support Program through engaging a single national provider.  By reducing the number of providers and tightening the management of the ISS program, the Government will save $31.1 million over four years.

Lindsay Tanner said these reforms build on the savings achieved in the last two Budgets through initiatives such as cutting MPs printing allowances, reducing the amount of Government advertising and streamlining administrative arrangements.

“This is not about slashing and burning Government projects, it is about finding ways to deliver our services and assistance more efficiently and effectively to deliver savings to taxpayers and the Budget.”

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