Core public service agencies spent $420 million on consultants and contractors in the nine months to March 2025, the lowest level—just 4.5% of the total wage bill—since tracking began seven years ago, according to the Public Service Commission.
The Ministry of Education was the largest spender at $146 million, while MBIE and MSD saw significant reductions.
However, when Defence, Police, Crown entities, and non-core departments are included, total contractor and consultant spending reached $1.22 billion, split evenly between capital projects and operational needs like temporary staffing.
The government has pledged to cut $400 million annually in operational spending, with $274 million already shaved off by June 2024.
Image credit: Scott Graham
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