Reviews of departmental spending have found $2 billion in cuts over the next four years which Finance Minister Bill English says will be ploughed back into areas the Government feels are of higher priority.
Mr English said $454 million had been found in the current financial year and 2009/2010, rising to more than $500 million by 2012/2013.
Areas identified in budget documents included:
* Reducing the funding subsidy for hobby courses in adult community education - $54m;
* the previously announced decision to not reduce early childhood teacher-child rations - $275m;
* reducing tertiary tripartite funding - $55 million;
* cutting support function spending in the Education Ministry - $55m;
* ending enterprising communities subsidies - $32.3m;
* reconfiguring the Market Development Assistance Fund - $101m;
* cutting the New Zealand Innovation Centre - $15m;
* cutting conservation spending over four years - $54m;
* reducing overseas development assistance over four years - $166m;
* cutting at the Foreign Affairs Ministry over four years - $105m;
* productivity gains at the Social Development Ministry - $354m;
Mr English said the money would be better used elsewhere.
"It is an extra $454 million the Government has put into key policies like more police, more probation officers and training more doctors and nurses," Mr English said.
"It is on top of the $1.45 billion increase in operating spending announced in budget 2009, meaning New Zealanders are effectively getting $1.9 billion in new initiatives."
Mr English identified a number of areas the money had been diverted to, including:
* Funding new schools and maintaining existing ones including operational funding;
* more money for special education services;
* $81.6m over the next four years for the Government's Fresh Start initiatives for young offenders.
