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Friday, 18 December 2015

Government wants to be thrifty

Recently, the government has called upon its agencies not to overspend but answer and the optimized that expenditure . In other words the government has decided that the public sector must have a culture of being thrifty and stopping, in its own words, expenditure leakages.

It was estimated that by reducing 30% of expenditure, many other projects would be benefited. It described leakages as delay in development projects, which incurs and increases cost. The government called upon its agencies to come up with innovative and creative ways to optimize expenditure.

Optimizing expenditure must mean reducing expenditure. In contrast, optimizing spending may be construed as maximizing spending, which carries negative connotations. While this is not the first time that government has tried to reduce cost, previous efforts may have spiraled out of control because (in my observation) government agencies tend to try to finish off their budgets before the end of the year. This may lead to unnecessary spending.

However, despite this bleak observation, it is a source of funding for researchers and consultants. I remember some of my professors mentioning that it is a good idea to apply to government department to conduct some studies on their behalf, especially around November. If there is unused budget, there is a good chance of getting it (your proposed research funded). But if there is no budget, then there will be no chance of getting it (funding for your proposed research)!