Government Savings Targets

In reply to the Hon. S.C. MULLIGHAN (Lee) (28 July 2021). (Estimates Committee B)

The Hon. R.I. LUCAS (Treasurer): I have been advised the following:

The 1 per cent expenditure growth applied for 2021-22 and 2022-23 has resulted in a reduction in budgeted expenditure of around $15 million in 2021-22 and around $30 million in 2022-23 compared with the 2.5 per cent indexation estimates previously provided.

Over the three-year period 2020-21 to 2022-23, agencies' budgets were set to provide average indexation of 1.5 per cent per annum. The retention of 2.5 per cent indexation in 2020-21 is estimated to have provided agencies with additional budget capacity of $10 million in 2020-21 compared to a scenario where agencies' 2020-21 budgets were adjusted to reflect 1.5 per cent indexation.