From the Herald:
The number of Budget bids from Government departments for extra money halved from last year, and 25 per cent of them were “savings” bids, says Treasury Secretary John Whitehead.
“That’s a significant and positive change in approach,” he told an invited audience of analysts, officials, academics and journalists at the Treasury yesterday. .
Departments need approval even for spending cuts, to ensure they are areas the Government wants cut.
25% of budget bids were bids to save money. My God. I doubt in nine years of Labour there even a single budget bid to save money, let alone 25% of all bids.
“We focus too much on new spending and not enough on the very significant base, even though polices introduced five or 15 years ago, may no longer be as effective or fit Government objectives.”
He criticised the public service “year-end spend-up”, in which departments spend any spare money they have, fearing that if they don’t, their grants will be be reduced the following year.
In the private sector, you get rewarded if you underspend your budget. In the public sector, you may get sacked if you underspend!Tags: government spending, Treasury