Illustration of Civil service review: $1.2b salary bill for 42K workers costly, says Biman

Government’s $1.2 Billion Annual Spending on 42,000 Publicly-Funded Employees Criticized as Costly

The government allocates approximately $1.2 billion annually to fund around 42,000 publicly-paid employees, according to Deputy Prime Minister and Finance Minister Professor Biman Prasad.

In presenting the 2024-2025 Budget, Prasad announced that the state will collaborate with the Australian Government to conduct a comprehensive review of the civil service structure and salary framework across public entities.

Professor Prasad emphasized the pressing need to equalize salaries among publicly funded employees and optimize the workforce size.

He attributed the significant increase in civil servants to past civil service reforms and the 2013 constitutional changes that shifted oversight and control from the Public Service Commission to individual Permanent Secretaries.

“Currently, we have over 42,000 publicly funded employees, including approximately 38,000 in the civil service and nearly 4,000 in independent institutions and state-funded entities. This imposes a significant financial burden of around $1.2 billion,” the Deputy Prime Minister stated.

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