Australian gov't seeks 486 mln USD savings by raising efficiency dividend
Australian federal government is seeking 486 million U.S. dollars in savings in the May 10 budget by increasing the efficiency dividend for two years, Finance Minister Penny Wong said on Thursday.
Under this measure, the efficiency dividend will rise from 1.25 percent to 1.5 percent in 2011/12 and 2012/13, before returning to 1.25 percent for 2013/14 and 2014/15, resulting in a saving of 1.15 billion U.S. dollars over the forward estimates.
"The efficiency dividend is a mechanism to drive greater efficiencies in how government does its business," Senator Wong told Australia Associated Press in Adelaide on Thursday.
Under the efficiency dividend, public service departments are asked to produce the same output with 1.25 percent less resources each year as part of a government measure to drive productivity.
The move had been expected to lead to public service job cuts, but Senator Wong said the government believed the public service had the capacity to adapt to these changes without job cuts.
"It is the government's strong expectation that agencies will be able to meet the temporary increase in the efficiency dividend without resorting to forced or compulsory redundancies," she said, adding that that government has conducted extensive consultation, with more than 160 bodies invited to comment on the efficiency dividend.
However, The Australian newspaper said the move, announced by Wong, will outrage public servants, who were assured during the election campaign that there would be no increase in the efficiency dividend.
In anticipation of criticism from the public sector, Senator Wong reminded Australians that the Opposition has proposed a 2 percent efficiency dividend and a recruitment freeze.
Source: Xinhua
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Under this measure, the efficiency dividend will rise from 1.25 percent to 1.5 percent in 2011/12 and 2012/13, before returning to 1.25 percent for 2013/14 and 2014/15, resulting in a saving of 1.15 billion U.S. dollars over the forward estimates.
"The efficiency dividend is a mechanism to drive greater efficiencies in how government does its business," Senator Wong told Australia Associated Press in Adelaide on Thursday.
Under the efficiency dividend, public service departments are asked to produce the same output with 1.25 percent less resources each year as part of a government measure to drive productivity.
The move had been expected to lead to public service job cuts, but Senator Wong said the government believed the public service had the capacity to adapt to these changes without job cuts.
"It is the government's strong expectation that agencies will be able to meet the temporary increase in the efficiency dividend without resorting to forced or compulsory redundancies," she said, adding that that government has conducted extensive consultation, with more than 160 bodies invited to comment on the efficiency dividend.
However, The Australian newspaper said the move, announced by Wong, will outrage public servants, who were assured during the election campaign that there would be no increase in the efficiency dividend.
In anticipation of criticism from the public sector, Senator Wong reminded Australians that the Opposition has proposed a 2 percent efficiency dividend and a recruitment freeze.
Source: Xinhua
Weekly review April 14 BRICS nations can be anchor of global economy, politics April 13 China launches assault on child kidnapping April 12 China's coastal seas unaffected by Japan's radioactive water April 11 US has serious human rights abuses: China April 16 The week in pictures April 11 PM Kan offers thanks for 'Kizuna' on People's Daily April 13 Stable BRICS nations prop up world development April 13 US should stop acting like 'preacher' of human rights April 15 GDP rises 9.7% in Q1, inflation surges too April 14 Auditor lady's sudden death sparks overwork debate Editor
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