The twin evils of our budget
Much of the fascination around the 2013/2014 budget has been lost as gathered from the social media. An insight into this loose nexus between the budget speech and the people it is meant for necessitated this article. We consider the meaning of a budget, its participatory and inclusive measures as well as the people’s understanding of the budget beyond the salary increase expectation.
Budgeting is characterised by its approaches, functions, format and type. In the economist lens, budgeting is the allocation of resources in terms of best alternative use (opportunity cost). From the political angle, budget process is a political event conducted in the political arena for political advantage (W. Smith and Thomas D. Lynch).
The accountant perspective focuses on the accounting value in budgeting which analyses the amount budgeted to the actual expenditures whilst a public manager views budget as policy tool to describe implementation of public policy.
Now, a combination from the above views equates budget as a plan for the accomplishment of programmes related to objectives and goals within a definite period, including an estimate of resources required together with an estimate of resources available, usually compared with one or more past periods and showing future requirements as well. Of course the budget speech fulfilled this definition.
Beyond the paper, we look onto the participatory and inclusive measures of this year’s budget. On a general outlook, commendable is the reduction in the ‘expected’ deficit from the 2012/2013 budget, forecast surplus of 0.6 GDP, completion of projects such as the Kazungula Bridge, and government’s prioritisation of education (as the largest component of the recurrent budget).
However much is needed on issues of unemployment and poverty. The unemployment, particularly for the youth continues to rise but the budget speech held no more than the known programmes of internship, YES, YDF, LIMID and others. The internship programme is a hub to many unemployed graduates and its success is yet to be marked. This is one programme that need not be assessed by the mention in budget speech but the outcome.
How many graduates are actually developing their skills from the programme or precisely how much of the intended benefit does the nation derive from this expenditure?
Actually by now, government should have implemented graduate job creation policies beyond the internship programme since this programme is rather a short term measure to the long run problem of unemployment in the country. And perhaps an extensive monitoring and evaluation of all the youth skills development programmes is what people need to hear.
The budget’s strategic planning role is acknowledged, as deciding on the goals and objectives to empower youth, but has to extend further on its functions of management and operational control. In this case management control will ensure effective and efficient accomplishment of goals and objectives as laid out via strategic planning whilst the operational control focuses on proper execution of the specific tasks that provide the most efficient and effective means of meeting the goals and objectives as ordered by management control.
In as much as government’s commitment to poverty eradication is applaudable, the employed measures should be sustainable enough, beyond cash transfers, food baskets and feeding schemes. It is an old saying that rather teach how to fish than give fish, in addition to the country’s self reliance principle of NDPs.
Due to the small private sector, government should practically assume role as the employment provider through the traditional strengths like agriculture. Agriculture could be expanded in form of state farms in which people could work and be paid for productive work rather than provided through the social safety nets. In terms of output and employment, agriculture is potentially a sector that requires a significant resource allocation.
Distinctly the participatory and inclusive measures of the national budget comes unclear, if the budget does not show government’s aggressive attempts to address the current hot concerns of unemployment and poverty within the country. Intensive efforts in this regard are a mile in the sought after structural transformation of the country’s economy. Lastly may I call for citizens’ sense of involvement in national events such as the budget speech.
The budget is more than the salary increase expectation but to know how your own entitlement of resources as a citizen has been allocated. It is a reflection of the nation’s preference of resource allocation. How then do you give voice, demand accountability or question the government’s effectiveness if you choose not to bother just because there is not a mention of salary increase?
No matter your point of view of the budget, understanding is important. Most people have dismissed the national exercises like budget as political, but really in today’s times, that is not a reason enough to call for our ignorance. Politics form a significant portion of decision making in this era and personally I have come to accept that I cannot afford to detach myself from such processes since the decisions made ultimately affect me.
* Montle is a women empowerment activist and pursuing MA Development Economics in Japan. An upcoming woman, she advocates for inclusive sustainable development and economic growth.
