Cuts, cuts, cuts make the public service bleed

Stefanie Garber

Efficiency dividends help the government cut costs. However, cuts to the public service may decrease productivity, stifle innovation and lead to long-term compensation claims.

As election season rolls around, so does open season on the public service. Promising cuts to government departments is a go-to measure for party’s looking to curry public favour. Efficiency dividends are targets requiring the public service to reduce its budget by a certain percentage margin each year. So, a 1% efficiency dividend means government departments need to reduce their costs by 1% and so on. Compared to businesses pur...

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Published 19 September, 2013