Belief the public sector will be crippled by the Government's slashed Budget operating allowance

It's allocated just 1.3 billion dollars - a major drop from the Treasury forecast of 2.4 billion.

It says it's freed up billions of dollars through additional public service cuts - to fund its priorities.

Better Taxes for a Better Future chair, Glenn Barclay, says the public sector's already pressured - health in particular.

He says there's no point fiddling around at the edges of the health service and we need to resource it.