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.
Daily Telegraph New Zealand (DTNZ) is an independent news website, first published in October 2021. - where this article was sourced.
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.
Daily Telegraph New Zealand (DTNZ) is an independent news website, first published in October 2021. - where this article was sourced.
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