Reducing wasteful expenses
Intent to reduce wasteful spending to cut costs is welcome, but is the will to ensure policy’s implementation there?
Splurge: Rs3m was the amount spent by the Ministry of Finance on refreshments during the austerity period.
The government has re-introduced the austerity policy, banning the purchase of new vehicles and creation of new posts in government departments, as it looks to tighten the noose around what has historically been seen as wasteful spending. What is problematic here is that the authorities have introduced these austerity measures before as well, only for these to be violated time and again before they are officially rescinded. One cannot help but wonder if the same pattern will be followed again, with the government continuing to purchase new, luxurious vehicles, creating jobs under the name of development spending and handing out contracts that are not needed.
Whatever the outcome, one thing is for sure — the government needs to either dramatically cut down spending or drastically increase its revenue. With interest payments swelling and revenue taking a massive hit due to declining oil prices and rampant tax evasion, there is no denying that austerity measures are needed.
However, the finance ministry’s directions for the austerity policy have conveniently allowed the purchase of vehicles for the operational use of law-enforcement agencies, and the creation of posts for development projects if they are approved by a competent authority. The second part raises questions as to what constitutes a competent authority. And if this provision has been made now, did that mean that the creation of posts was being previously approved by authorities unfit for the purpose? In 2013, when the government implemented the drive, we saw how measures that were listed never saw the light of day. Recently, we have seen how the Central Development Working Party approved a Rs200 million project under the head of institutional strengthening that saw the purchase of vehicles, renovation of offices and accommodation of retired bureaucrats. And we know about the luxurious lifestyles of government dignitaries. The intent to reduce wasteful spending in order to cut costs is welcome, but is the will to ensure the policy’s implementation also there? That remains to be seen.
Published in The Express Tribune, September 11th, 2015.
Whatever the outcome, one thing is for sure — the government needs to either dramatically cut down spending or drastically increase its revenue. With interest payments swelling and revenue taking a massive hit due to declining oil prices and rampant tax evasion, there is no denying that austerity measures are needed.
However, the finance ministry’s directions for the austerity policy have conveniently allowed the purchase of vehicles for the operational use of law-enforcement agencies, and the creation of posts for development projects if they are approved by a competent authority. The second part raises questions as to what constitutes a competent authority. And if this provision has been made now, did that mean that the creation of posts was being previously approved by authorities unfit for the purpose? In 2013, when the government implemented the drive, we saw how measures that were listed never saw the light of day. Recently, we have seen how the Central Development Working Party approved a Rs200 million project under the head of institutional strengthening that saw the purchase of vehicles, renovation of offices and accommodation of retired bureaucrats. And we know about the luxurious lifestyles of government dignitaries. The intent to reduce wasteful spending in order to cut costs is welcome, but is the will to ensure the policy’s implementation also there? That remains to be seen.
Published in The Express Tribune, September 11th, 2015.