The Australian government is planning to slash nearly A$1.1 billion from public spending over the next four years and increase its so-called efficiency dividend, Finance Minister Penny Wong said Thursday.
The efficiency dividend - a mechanism to cut spending in public service departments - will provide an additional savings of A$465 million in the 2011-12 Budget. The measures will help to bring the budget back to surplus in 2012-13, Wong added.
The increase in the efficiency dividend to 1.5 percent from 1.25 percent in 2011-12 and 2012-13 shows that the government is determined to lead the way by tightening its own belt first, Wong said. The rate will be reduced to 1.25 percent in 2013-14 and 2014-15.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.