The Government has struck a deal with the Reserve Bank to cut its operating budget by 25 percent in the coming financial year, as part of a broader push to rein in public sector spending.
Finance Minister Nicola Willis announced the new five-year funding agreement, which will allocate $750 million in operating expenses and $25.6 million in capital expenditure to the central bank from July 1, 2025.
The Reserve Bank had initially requested $1.03 billion over the five-year period, but Treasury advised that the proposal did not offer good value for money. The bank’s annual operating budget will now average $150 million, down from the current year’s $200 million.
Willis noted the Reserve Bank’s significant expansion in recent years, with staffing levels growing from 255 full-time equivalents in 2017/18 to 660 by January 2025. Treasury analysis indicated that several non-core areas, such as People and Communications, appeared overstaffed.
“This agreement ensures the Reserve Bank can meet its legal responsibilities while operating with greater efficiency,” said Willis, adding that both the Treasury and the Reserve Bank board support the new spending limits. The five-year funding model, unique to the Reserve Bank, is designed to protect the institution’s independence while maintaining fiscal discipline.
Very good
Will stop these Oompa Loompas falling over each other
Replicating and featherbedding
Shifting piles of paper from one table to another
And sitting around with their fingers firmly entrenched in can’t say
Shock and Orr
When push comes to shove?
Parasites
“Designed to protect the institution’s independence while maintaining fiscal discipline”.
The central bank and governments work hand in hand, partners in crime.
The government borrows the ‘IOU debt notes’, (fiat) the central bank creates it out of thin air (print) and the tax slaves pay the interest on every ‘IOU debt notes’ created.
A GIANT PONSI SCHEME.
Treasury analysis indicated that several non-core areas, such as ‘People’
What does the People dept do?
The truth is, that nothing can and never will change by any politician, because the all pawns, meaningless, powerless figureheads, marching to the tune of an unseen band. Elite would not permit any politician come to power unless he or she is prepared to follow the particular diktat to the letter.
any proof / real evidence as to who really owns the reserve bank?
And can we transparently see their accounts (balance sheet, last 5 years p&l ?
And as they make profits, why do they need taxpayer $ to operate?
Very valid questions. I want an answer too.
The NZSIS should look into the Reserve Bank. They’ve clearly got heaps of time on their hands investigating RNZ https://www.rnz.co.nz/news/national/558449/nzsis-inquiries-into-former-rnz-journalist-appropriate-spy-watchdog
Four fn hundred what a fn joke! No wonder we are all broke sick!
