Budget reform

I have worked in different departments across the goverment (and elsewhere in Europe). What I have noticed is that when each department comes to the end of the financial year budget, if they still have money left unspent in their annual budget, they hurry up spending it (sometimes to things that are not necessary) as otherwise budget for their department would be reduced the following year. I think it would be much more economical and efficient to reward departments who don't spend all of their budget - perhaps to give them instead more money to staff training fund or other reward that would motivate departments to spend only on necessary things. Current system encourages unnecessary spending.

Why the contribution is important

I have witnessed that money is used to things that are not necessary- but I was told that "if we don't spend it, we loose it". This is understandable from department point of view, but I believe the whole system overhaul is necessary to avoid such unnecessary spending.

by Riikka on May 15, 2017 at 02:20PM

Current Rating

3.0
Average score : 3.0
Based on : 2 votes

Comments

  • Posted by dpfellows May 15, 2017 at 16:15

    The 'Sloc Principle' - you are absolutely correct.

    Additionally the projected amount of money available for budgets should be set in advance of the budgeting process based on best estimates of income and the need to break even at least (hopefully to put money back into the General Reserve). That way it becomes a top-down budget process within clear spending constraints not a bottom-up one.
Log in or register to add comments and rate ideas

Idea topics