Only four government ministers have saved money this year. Here's who

Only four government ministers have saved money this year. Here's who

Only four out of more than 20 government ministers have managed to save more than they have spent this year, pointing to challenges across the board as the cabinet works to rein in spending.Stung by the accusation from the opposition and some commentators that the federal budget is worsening inflation and fuelling interest rate hikes, ministers have indicated they are searching for fresh savings ahead of December's budget update.Finance Minister Katy Gallagher has indicated the government is looking "across the board" for savings, but has declined to commit to a "net" saving — that is, big enough to offset any new spending.A net save of $8.2 billion was achieved in the May budget, measured over the full five years of budget forecasts. But the government failed to achieve a net save for this financial year, when inflation pressure is most acute.Looking at this year alone, the government spent $8.7 billion more than it saved. It also raised an extra $2.2 billion in revenue, meaning the budget was $6.5 worse off overall.Savings record by portfolioOnly Infrastructure Minister Catherine King, Education Minister Jason Clare, Agriculture Minister Julie Collins and Treasurer Jim Chalmers achieved net savings for the 2026-27 financial year, according to an ABC analysis of budget papers.Of these, only Ms King's portfolio had substantial net savings with $1.3 billion overall, mostly from the decision not to proceed with programs including Inland Rail.The largest net spend for 2026-27 was Health Minister Mark Butler, whose total includes measures the government describes as "unavoidable", including the listing of new PBS medicines and a major hospitals deal.This was despite some savings from the NDIS and the private health insurance rebate for older Australians, which is yet to win support in parliament.Defence Minister Richard Marles and Finance Minister Katy Gallagher, whose responsibilities include Services Australia, both spent in excess of $1 billion.Catherine King achieved the largest net save this year, with nearly $1 billion. (ABC News: Matt Roberts)Public squeeze set to continueThe government has offered few specifics about areas it will target for mid-year budget savings, but Senator Gallagher confirmed last week the public service would be subject to "belt tightening".The Albanese government has overseen a significant expansion in public service headcount, from 173,558 before it came to office to 217,256 as of May, spread across multiple portfolios.The largest individual increases were the National Disability Insurance Agency (more than 5,000 new staff) and Services Australia (more than 4,000).Labor fought former Liberal leader Peter Dutton's bid to reverse that increase during the 2025 election campaign, but has made quiet moves of its own to contain public service spending since then.Peter Dutton campaigned unsuccessfully to return public service numbers to their pre-pandemic levels. (ABC News: Matt Roberts)In 2024, it opted not to give departments any extra money to cover the wage rises in a new pay agreement worth 11.2 per cent over three years. That effectively required departments to find 11.2 per cent of savings elsewhere.Several subsequently offered redundancy rounds last financial year, with at least 1,500 redundancies confirmed but an exhaustive tally not yet available.But an ABC analysis of budget papers show departmental staffing costs still increased by $792 million last year, only partly offset by a $687 million reduction in "supplier" costs, such as consultants. Annual reports indicate further cost overruns are likely.Earlier this year, ministers asked all departments and agencies to identify five per cent of their resourcing that was "low priority". Senator Gallagher emphasised at the time that this was meant as a savings shortlist, not as a five per cent overall cut.It is unclear how much of the five per cent was used in the May budget, but Mr Chalmers has previously indicated that plans for more extensive cuts were shelved when the Middle East War broke out, suggesting some items may still be available.The Coalition has identified several areas of "bureaucracy" it would cut if elected, including climate and housing initiatives and subsidies for electric vehicles and home batteries, but it has not repeated pre-election calls to reduce public service headcount.

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