More cuts by Govt likely

Press, Volume CXVI, Issue 34133, 21 April 1976, Page 1

More cuts by Govt likely

'From our Wellington reporter I

Further cuts in Govlernment spending are expected to be announced next week. The acting Prime Minister (Mr Taiboys) said after a Cabinet meeting yesterday that the review of total Gov-i ernment expenditure was almost completed, and some of its decisions would be released next week or soon after. Mr Taiboys would not say how much the Government hoped to save in total — although he confirmed that the original target had been for a saving of about s3oom. The full impact of cuts would not become clear; until the Budget, but certaim

announcements had to he .made, before the Budget, for them to be effective. •'What we're dealing with really are forecasts of expenditure which were prepared months ago,’ - he said. •‘They’ are more likely to appear as restraints than actual cuts.” The allocations for depart mental expenditure would normally move upwards to keep pace with inflation, hut in some cases the depart ments would possibily not receive any increase on last year's allocation, even though the actual monetary sum might not itself be cut. “While nobodv welcomes it the simple fact is that there must be restraints,” he (said.