Public sector cuts expected in NSW budget

NSW Treasurer Dominic Perrottet says Tuesday's budget will focus on reducing back office costs.
NSW Treasurer Dominic Perrottet says Tuesday's budget will focus on reducing back office costs.

More than a thousand public sector jobs could be cut under a cost-saving measure to be announced in Tuesday's NSW Budget.

The NSW government will require departments to reduce some employee expenses by five per cent, though the directive won't apply to all of the government's 320,000 staff.

"The government is focused on boosting teachers, nurses, midwives, police and other frontline workers," Treasurer Dominic Perrottet said in a statement on Saturday.

"The 2019-20 budget will include sensible savings, with a focus on reducing back office costs.

"We will work through the details of this across the coming months."

Public transport drivers and those working in frontline social and welfare roles are also expected to be exempt from the cuts.

The Australian newspaper reported up to 2500 jobs could be on the line, though a government source said there was no particular number in mind.

The coalition promised before the March election to reduce the amount spent on public sector executives by 10 per cent by June 2020, keeping up to $159 million in government coffers. It also promised to cut the amount spent on private consultants by 20 per cent annually, saving almost $25 million each year.

Australian Associated Press