New Zealand Military Faces $130 Million Budget Shortfall, Seeks Voluntary Layoffs

New Zealand's military plans to ask civilian staff for voluntary layoffs and make other budget cuts to address a NZ$130 million shortfall. Despite cost-saving measures, an additional NZ$30 million needs to be found. The government aims to improve armed forces amid growing geopolitical tensions.

New Zealand's military announced on Thursday plans to seek voluntary layoffs among civilian staff and implement other budget cuts in an attempt to address a NZ$130 million shortfall.

While the military has identified NZ$100 million in potential savings, spokespersons said that an additional NZ$30 million is still needed. The defence budget for the current fiscal year has been reduced to 0.9% of GDP, down from last year's 1%. Recent reports have warned about outdated equipment, and personnel shortages have led to three of the country's nine ships being idled.

In addition to voluntary layoffs, other cost-saving measures considered include restricting recruitment and cutting vacant positions. No pay increases are planned for civilian staff, health practitioners, or military personnel. Defence Minister Judith Collins described the financial shortfall as an 'operational matter' and declined to comment further. Despite budget constraints, the government remains committed to improving the armed forces and tackling regional and global challenges.

(With inputs from agencies.)