Bryce Wilkinson: Former Treasury Director expects signs of cutting wasteful spending in today's Treasury update

There's an expectation the Government's surplus will be pushed back a year or so. 

The state of the Government's books will be unveiled today, as Treasury release its half yearly economic and fiscal update early this afternoon. 

May's budget laid out expectations for further cost savings across government departments across years to come. 

Former Treasury Director Bryce Wilkinson told Heather du Plessis-Allan he's looking for signs of cutting 'wasteful' public spending. 

He says slow productivity growth is not helping income grow. 

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Episode Transcript

Speaker 1 (00:00):
We're going to find out today just how stuff the

(00:01):
government's books are when Treasury releases its half year Economic
Update or the HIGAFU. Now, it already sounds like the
Finance Minister is softening us up for a return to
surplus to be a year later than we had expected,
and with us now as the former Treasury director in
New Zealand Initiative, Senior Fellow Bryce Wilkinson, Hey.

Speaker 2 (00:16):
Brice, it's good morning.

Speaker 1 (00:18):
Given what's happening with the economy at the moment, are
you happy to see the surplus pushed out or do
you expect better?

Speaker 2 (00:28):
Well, I'm not happy to see that pushed out, but
if it's pushed out, that's what it is. What I'm
really looking for is signs of even more determined action
by the government to stop so much wasteful public spending
and to use assets better, and also to do things

(00:50):
about New Zealand's already slow growth and productivity. It's that
slow growth which isn't producing much income growth and therefore
the govern it's not getting much revenue growth, so that's
part of the problem.

Speaker 1 (01:03):
What kind of cutting would you like to see.

Speaker 2 (01:07):
Well, the government sort of holding public service numbers way
above where they were pre COVID, and a government spending
is running at about two percent of GDP higher than
it was pre COVID, So it's a case of chasing
value for money and government spending. I particularly support the

(01:32):
government's initiative in the social policy space of bringing back
the Social Investment approach, which really has a focus on
finding out what programs work.

Speaker 1 (01:44):
Bryce the government doesn't have to push the surplus out right.
They could actually do what you're saying, what you're advocating for,
which is just cut really deep and get us back
into surplus earlier, can't they?

Speaker 2 (01:55):
Yes, that could be done.

Speaker 1 (01:58):
Why not?

Speaker 2 (02:00):
I've been hoping that in last year's budget the government
would have done more, but it left itself very little
physical room for maneuver with extra operating speining, then spend
a lot more money on pharmaceuticals and yeah, so it's
put it so funder more pressure this year by not

(02:23):
doing more last year.

Speaker 1 (02:25):
Yeah to right, Bryce, Thanks very much, doctor Bryce Wilkinson,
former Treasury Director in New Zealand Initiative senior fellow. For
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