MFAT cuts spending by less than 1 percent

Foreign Minister Winston Peters has announced $60 million in this year’s Budget will go towards the renewal of New Zealand’s diplomatic post infrastructure in the Pacific.

It comes alongside the announcement the Ministry of Foreign Affairs and Trade has found $15m in savings per year – adding up to $60m over the four-year forecast period – from “back-office efficiencies and lower priority activities”.

The savings account for slightly less than 1 percent of the ministry’s departmental and non-departmental total budget. The ministry – like all other departments in the public sector – had been asked to find savings of 6.5 percent.

Peters said the ministry’s Budget allocation this year would balance “two crucial priorities of the coalition government”.

“While Budget 2024 reflects the constrained fiscal environment, the government also recognises the critical role MFAT plays in keeping New Zealanders safe and prosperous.”

The $60m includes capital and operational funding.

Peters said the $15m in savings per year showed the ministry was playing its part in turning around the country’s financial position.

“Under new Board leadership, we are also turning around the serious fiscal risks we inherited on the stalled Scott Base Redevelopment project, reducing taxpayer liability for what remains a significant project of national interest,” he said.

“The balance struck in this year’s budget is between risk and opportunity and between back-office savings and front-line investment.”

According to the news on Radio New Zealand

Related News

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button