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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