What if I told you government spending could be reduced right now, without slashing budgets or reducing services.
Yeah, right. How genius? No one in the history of the world has a accomplished such a feat.
So for almost as long as governments have existed, many if not most seem to have adopted the strange idea that if you don’t spend all your budget it will be reduced. Basically this is taking the proverbial a carrot away and using the stick to punish only spending money on what your department needs.
I have worked in government for over 30 years. I see unnecessary spending every year. When I ask why, the answer is ALWAYS, ‘We have to spend this money’. The answer has never been, ‘We need this’. Things that are required are purchased early in the year, never at years end.
I have seen office furniture be replaced every few years for this reason. I have seen unnecessary computer equipment be replaced for the same reason. I have seen accommodations be painted and carpets replaced for this very reason. The list can go on and on. I could tell you so many stories of government waste, it would make your hair curl.
We live in a society where we are told that living in debt is ‘normal’. In fact our whole model of economics screams ‘waste’ and ‘overspending’. Buy now pay later , forever. Government is run by the same people who’s own home finances are ‘in the red’. Does that make sense? Should anyone with personal debt, be running a government budget? Nature does not live in debt. Nature does just fine. In fact it does more than fine.
How does one fix this? Maybe we could allow saved department money from one year carry on to be spent when it is required? The government could invest it until spent. It would cost nothing, as the department gets the same money either way. They just get to spend it wisely. Would they? Maybe not in every case. But they sure as tootin’ are not spending it wisely with a gun held to their heads.
In essence we need to reward better spending and long term vision rather than, it’s the end of the year, spend every penny your department has failed to spend.
The idea that a department requires, to the penny, the same budget every year is ludicrous. Saving for a rainy day is more than a common saying. It is wisdom, even if it is not so common.
To be honest, this is not exclusively a government problem. Any large organization tends to follow simpler, stupid, practices such as this one. People are lazy, and we tend to try and make things as simple as possible. But the bookkeeping in this case is not much more complicated. Wise leadership that actually knows what happens at the pointy end is what is required. But leaders are too busy trying to convince you to vote for them. Thy have no time to actually fix anything in a 24 x7 news cycle world. Our technology makes effective governing almost impossible. Technology makes things harder, not simpler. I know you have all been told otherwise, but if you actually reflect on this, you will see it is true.
https://www.linkedin.com/pulse/government-spend-down-practice-inefficiency-design-john-pfmdc