Expenditure remains tight

The recent disruption by the firemen continues to highlight the difficult job that the government has in meeting its recurrent expenditure.  It demonstrates how sensitive the budget is and how delays in collecting government revenue can cause delays in meeting salary obligations.  This may become a regular feature in our economy as we struggle to get growth for the country.

It is a reminder that the inability/unwillingness of the finance ministry to collect taxes from delinquent taxpayers continues to make life difficult for those who pay.  I state that there is sufficient money that can be collected in order to meet the government’s obligations but no one wants to go after it.

Improvements have been made with relation to customs duties but there is still room for improvement. It is time to reform the tax system so that the government can collect the tax revenue more effectively.  In addition, if some taxes were lower, then compliance rates are likely to increase.  The problem is that Jamaicans are very much against taxes but yet want all of the government services.  If people will not pay their taxes then government may have to charge fees for services that it provides.  It can then use the PATH programme or similar plans in order to protect the most vulnerable in society.

We continue to hear about government projects with significant cost overruns from the north coast highway to the recently opened Ian Fleming airport.  Government seems unable or unwilling to complete projects within budget.  This makes the road infrastructure programme particularly worrying.  An amount has been set aside to do the road works but will they be able to complete the job within cost.  In times of tight fiscal discipline it is imperative that we manage our resources carefully and that waste is eliminated.  However, once again neither government has demonstrated that it is concerned about cost overruns.  If projects are completed within budget then it means that more work will be done for the same money and it will take less time to finish the outstanding projects.

The concept of a budget is to determine your income and your expenses and whether or not there is a deficit or surplus.  It is not enough to simply allocate funds for projects but it is also important to see that scarce resources are effectively and efficiently spent.  This is the area of management to which the government needs to pay more attention.  The electorate has entrusted the government with the running of the country and the management of its resources.  It is time that the government live up to the expectations of the people and perform at the highest level.

Tags: Carl Wilson