The public sector has been told it must cut up to 2 percent from its baseline budgets over the next 4 years.
The government is tightening its belt to making savings of around $4 billion in the public service.
That's over and above the $4 billion of savings included in May's Budget.
Public sector agencies have been told they must cut up to 2 percent, and spending on consultants will be trimmed by $165 million a year.
Some areas are off limits, such as superannuation, benefits and KiwiSaver; frontline health and education spending; the Defence Force, Police, and spy agencies, and the offices of parliament.
Prime Minister and Labour Leader Chris Hipkins spoke to Ingrid Hipkiss.
