Dutton says his plan to cut 41,000 federal public servants will save $10 billion over the forward estimates – $14 billion less than the figure he originally cited.
Dutton last month said he would pay for $9 billion in extra health spending – which has since reached $12 billion – by slashing the public service at a cost of $6 billion a year.
“Under the Labor Party [there are] 36,000 additional public servants, that’s at a cost of $6 billion a year, or $24 billion over the forward estimates… So, we’ve well and truly identified the savings,” he said at the time.
But in his budget reply speech, he put the savings from public service cuts over the four-year forward estimates at $10 billion – not enough to cover new spending.
“We will reverse Labor’s increase of 41,000 Canberra-based public servants – saving $7 billion a year once in place, and well over $10 billion over the forward estimates,” Dutton said.
This indicates it will take the Coalition several years to eliminate all the extra workers added under Labor, and means the opposition will have to find extra savings elsewhere to fund its pledges.
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