clarification for PT22, S4, Q24

confusedandenthused

Hey everyone. After much contemplation, I needed some clarification for this one.

(E) says the “province could keep its workers and use them more effectively, with a resulting savings of $600 million in its out-of-province expenditures.”  I get the concept of paying for the workers by using them more effectively. 

JY says the money to pay for the workers is coming from  “$600 million in cost savings.” 
 
So does the cost savings refer to the “$600 million in its out-of-province expenditures?” 

Does this mean that after the government has refunded the $600 million to the taxpayers- they still have another $600 million left in their budget and they’re going to be very thrifty with that money by cutting down certain expenses? 

Thanks.

iiiSpoon

Hey confusedandenthused, yes, the $600m is coming from out-of-province expenditures, but it's not that they have another $600m in their pocket for other stuff; otherwise, why worry about strategies to accomplish saving $600m in the first place.

Hope this helps.