March Madness

[Pliny]

It is that time of the year again when financial administrators are advising their department heads to spend any surplus in their budgets or face cuts in the next fiscal year.

I take issue with this practice and believe it wasteful and inefficient. All governmental staff are encouraged to submit a shopping list in order to empty out the till and then cry broke to increase their budget the next fiscal year.

This, can I say, is really irksome. I could just spit. :angry:

[Shakeyhands]

agreed, I work in IT sales and we see this every year, huge expenditures on stuff just to spend the budget money. HUGE.

How do you fix this though, I can understand why its done.

[Pliny]

agreed, I work in IT sales and we see this every year, huge expenditures on stuff just to spend the budget money. HUGE.

How do you fix this though, I can understand why its done.

You fix it by allowing the departments to keep the surplus and add it to the next years budget.

The reason they must spend all of their budget is to get an"increase" in the next years budget and not have to experience a budget cut because they have ended the year with a surplus. Of course if too many Departments have a surplus then that means the government is overtaxing the citizenry and it looks bad so spending the surplus is encouraged in the civil service from the top down.

Edited February 11, 2008 by Pliny

[geoffrey]

How do you fix this though, I can understand why its done.

Financial incentives for coming in under budget.

[Pliny]

Financial incentives for coming in under budget.

I t'in dat is what I said. Unfortunately, financial incentives from the point of view of government is wasteful.

Finance as regards government is simply a balancing act. Revenues in = Expenditures. None of their expenditures are wasteful of course as they must answer to the citizenry if such were the case. A deficit; lack of resources, is preferable to a surplus. The balancing act will stream the surpluses to the deficits. You must always appear to run a deficit or at least a balanced budget in your area, not doing so results in budget cuts. It's the origin of the concept of taking from the rich and giving to the poor which they implement in society. It is best you do not make a profit and business works to profit as little as possible as regards taxation. Is there any wonder Capitalism looks like madness?

It has gotten so bad that if expected annual budget increases are reduced they are considered budget cuts. Budget increases must be minimally above the inflation rate or they are a cut.

Government has no way of knowing whether it's expenses are wasteful. It's policies and programs are deemed by them to not be wasteful and only necessary. So no one cries when budgets are entirely spent. Every cent expended is deemed to be not wasteful. It is therefore nearly impossible to effectively complain about government waste as that is an impossibility.

[geoffrey]

I meant financial incentives directly to managers. You get 1% bonus for every 1% you come in under budget, something like that.

Edited February 23, 2008 by geoffrey

[Topaz]

Is it March madness or buying votes in the next election? Harper said they have to watch their spending not more than two weeks ago and here the Conservatives spend millions of dollar at the Conservatives own regions. Well, I guess they have to try and keep the voters who put them in there but I know couple conservatives that won't be back in Ottawa after the election.

[Pliny]

I meant financial incentives directly to managers. You get 1% bonus for every 1% you come in under budget, something like that.

Oh, geoffrey - personal financial incentives in the public service? Sacrilege. Instead of rewards (incentives) why not just remove the disincentives.

[Pliny]

Is it March madness or buying votes in the next election? Harper said they have to watch their spending not more than two weeks ago and here the Conservatives spend millions of dollar at the Conservatives own regions. Well, I guess they have to try and keep the voters who put them in there but I know couple conservatives that won't be back in Ottawa after the election.

Put on your glasses. This is not a partisan thread and all things are not about scary Conservatives so please do not visit this upon us here. March madness has been a neurotic syndrome of the civil service for decades regardless of politics.

[Leafless]

It is that time of the year again when financial administrators are advising their department heads to spend any surplus in their budgets or face cuts in the next fiscal year.

The Conservatives inherited this practice from the Libs.

It keeps the feds crony suppliers rolling in the green stuff.