Latest update April 17th, 2025 9:50 AM
Govt. agencies still unprepared for early budgets – Former Auditor General
Chartered Accountant and former Auditor General, Anand Goolsarran has pointed out that while the government must be lauded for bringing early budgets, many of its agencies continue to be unprepared when one considers that there is yet to be significant improvement in the implementation rate of the Public Sector Investment Programme (PSIP) in the last three years.
In his recent writings, Goolsarran said, “The year 2019 would mark the fourth year for which the national budget is presented to and approved by the National Assembly before the year begins. Prior to 2016, the budget was presented around the deadline set by Article 218 (1) the Constitution, except for the year 1976.”
The Chartered Accountant continued, “That deadline is not later than 90 days of the commencement of the year. An early budget avoids the Minister of Finance authorizing withdrawals from the Consolidated Fund in the first four months of the year pending the approval of the budget, but more importantly, it allows heads of budget agencies to plan their expenditures in greater detail before the year commences, especially in the area of procurement.”
The former Auditor General added, “However, considering that the majority of government expenditure relates to public procurement, significant progress is yet to be achieved to ensure that budgetary allocations are fully supported by detailed procurement plans.”
Chartered Accountant, Anand Goolsarran
HIGHEST RATE
After months of issues, the Government was able to improve the implementation rate of its Public Sector Investment Programme in the first half of this year.
The Finance Ministry had said that for the first half of 2018, the PSIP expended $19.0 billion, reflecting a 20.0 percent increase, over the comparable period, in 2017. This represents an overall implementation rate of 31.8 percent of the budgeted allocation of $59.7 billion, the highest half-year implementation rate in the last five years.
While challenges persist within the tender process, the Ministry said that evidence suggests that sensitization clinics, held with Budget Agencies, during 2018, to mainstream procurement planning and assist agencies with the preparation of procurement plans, have positively impacted this half year performance.
The Ministry said, too, that there has been a 30.0 percent improvement in the performance of the locally-funded portfolio, compared to similar period in 2017. Further, the general improvement in turnaround times in the tender process has contributed to improved implementation. As at the half year, more than $23.8 billion of the local PSIP projects were awarded.
Further to this, the Finance Ministry said that the implementation rate of the foreign funded portfolio of investments was 25.3 percent of the budgeted sum of $27.3 billion, an improved performance when compared to the $6.5 billion spent in the comparable period, in 2017.
Government said that it remains committed to delivering the PSIP, of $59.7 billion, supported by rigorous monitoring of all PSIP projects. In the second half, the Finance Ministry said that greater emphasis will be placed on accelerated implementation of the foreign funded portfolio of projects.
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