Australia’s second-longest-serving prime minister John Howard issued a warning that the nation’s “bloated” public service was dragging down the country’s productivity.

Chief Economist Leith van Onselen told 3AW Mornings host Tom Elliott Victoria’s bureaucracy has grown by 22,000 people between 2014 and 2025.

Press PLAY to hear what van Onselen believes needs to happen to improve the situation

““Wages are the state government’s biggest expense and if we are to bring the budget back into balance, the next government needs to downsize the public service,” he said.

Tom Elliott questioned why people working in the private sector earned less on average compared with those working in the public sector.

Press PLAY to hear Elliott detail why he is sceptical about public sector earnings compared with private sector roles

“Our economy does not leap forward by having more bureaucrats. It is people who work in the private sector who create wealth,” he said.

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