Friday, May 18, 2018

Get rid of bad and wasteful practices

There is a bad and wasteful practice that has been carried out in our government departments and agencies for several decades.

Each year, the Ministry of Finance approve a budget for the deparment or agency to spend during the year.

The amount spent is used to determine the budget for the following year.

At the end of the year, if there is any budget that is not spent, the head of the deparment or agency will spend that balance on unnecessary items so that their budget for the following year is protected.

My friend supplies scientific and test equipment for schools and universities. He told me that many of the schools purchased equipments that they do not need and they are kept in the store rooms.

I have heard similar stories from many sources over the years.

Is there a better and more responsible way to spend public money?

The answer is "yes" and money must be spend in a responsible way. They should be spent on items that are "necessary" and can have cost savings that is justified by the expenditure.

The head of the deparment or agency needs to have some guide on what is reasonable and necessary. This can be based on a guideline of $X per head count or per citizen that is served.
The $X depends on the activity of the department or agency.

This $X is based on the amount that is required each year. It is NOT based on the amount that is spent during the previous year.

There is case to argue that if money is not spent last year, it should be allowed to be carried forward to the following year - if the expenditure is still necessary and useful.

What I have said is clearly common sense. Why is the government, and the ministry of finance, adopting practices that are ridiculous and wasteful?

Well, it is time for the minister minister and the government to wake up and look for more "common sense" practices.

Tan Kin Lian

1 comment:

Anonymous said...

I think it is time to change our government.

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