Oppn finds extra $9.7b in savings

The federal opposition has announced an additional $9.7 billion in savings, with the
lion's share coming from a cut to the nation's "contingency reserve", an increase in
the efficiency dividend and reduced interest payments on debt.
The coalition says it will save $2.5 billion over four years by reducing the size of
the contingency reserve - which is essentially an emergency fund used to cover
unforseen commonwealth expenses.
It allows for program costs to be revised upwards and covers national security items
that can't be disclosed separately. Costs which arise after the budget has been
handed down can also come out of the reserve.
The coalition argues it will be more financially responsible than Labor, and so can
reduce the amount funnelled into the contingency reserve, from two per cent of
program costs to 0.7 per cent.
"We can manage money, we can manage programs much better than Labor, and we can
manage the books," opposition finance spokesman Andrew Robb said on Wednesday.
"We will get this debt down, we will stop the reckless spending."
The coalition says it will also save an extra $990 million by increasing the public
service efficiency dividend, from 1.25 per cent to two per cent.
A further $1.44 billion will be found through interest savings on debt, including
$660 million resulting from the sale of Medibank Private.