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Less than 30% of Public Sector Investment Programme was expended – Finance Minister
– says there will be too many roll over projects
Finance Minister, Winston Jordan
As the 2018 budget cycle gets underway, the 2016 budget and its achievements thus far have been under intense scrutiny. Some of the findings from that exercise by the Finance Ministry have, however, turned out to be underwhelming.
At the opening of the Ministry’s Budget 2018 preparation and sensitization training workshop, Finance Minister Winston Jordan said that as at the end of June, less than 30 percent of the Public Sector Investment Programme (PSIP) was expended.
During his address, the economist questioned the reason for this continued sloth in the implementation of the PSIP, especially at a time when it was touted as a boost to spending in the economy.
The Finance Minister said that no “late budget” excuse is applicable any longer, because for Budget 2017, the presentation to Parliament was on November 28, 2016 – a signal accomplishment of the administration.
“Where is the benefit from the early budget presentation when, for example, we still have budget agencies, in June, figuring out specifications of items to be purchased. We have awarded only 53 percent of the PSIP and expended a mere 28 percent on maintenance of infrastructure within the recurrent budget.”
Jordan continued, “While we happily and deservedly bask in the glow of improved examination results, we need to wake up to the reality that less than 50 percent of our Grade 6 children passed mathematics this year. Drugs and medical supplies are still in short supply at GPHC and in all of our regions.”
The Finance Minister added, “What lessons can we learn from this under-achieving performance? For one, it is that goals can be ambitious but not realistic. Grand hot air balloon ideas, not based on robust evidence, will never get off the ground, neither will they get anywhere.”
For those that do make it from the drawing board to the arena of implementation, Jordan said that ineffective management, and poor monitoring and supervision will compromise and depreciate the quality of the undertaking.
Therefore, the Minister said that it is opportune for the heads of budget agencies and other senior Finance Ministry staff to be reminded that they are servants of the people, charged with spending tax-payers money, including their own taxes, prudently, efficiently and effectively.
Jordan stressed that wastage and inefficiency are to be abhorred, as they rob the people of broader, targeted and timely benefits such as better services, better infrastructure and, ultimately, a better quality of life.
The Finance Minister added, “We need to be in a better position and in a better place, for where we are currently can neither be countenanced nor endured. I trust, therefore, that, as a collective, we will use the opportunity of reflection to renew our energies towards improved performance and better results across all sectors.”
IMPLICATIONS
With such a low rate of expenditure in the PSIP, there will certainly be implications for the next year’s budget. In fact, the Finance Minister said that there will be too many roll over projects which should have been completed this year, thus eating up expenditure for next year.
Jordan said, “So the PSIP in terms of new projects will be slightly down as it relates to all these roll over projects and this is what we are trying to impress upon the agencies; that first of all, there is no guarantee that projects which got funds this year will get funds next year, especially given the new emerging pressures that we have.”
In this regard, he specifically referred to the prison situation.
He continued, “So a lot of projects will be crowded out…Many of them should have been in an advanced stage of implementation, so that is a concern for this year and next year, because the PSIP was touted for boosting spending this year.”
The Finance Minister also related that the Government is trying a number of different initiatives. He referred to one that was recommended by President David Granger, which seeks to have Permanent Secretaries meet and report to Cabinet on what is happening ;taking place with the respective agencies on a monthly basis.
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