Thursday, December 12, 2019
Key Problems With The Current System In Kariba Ã¢â¬ Free Samples
Question: Discuss about the Key Problems With The Current System In Kariba. Answer: Keys Problems with the current system The Kariba case is an excellent example of wrong management of public wealth and expenditure and thereby revenue allocation. It shows that the resources havent been allocated well. A well-defined and functioning public expenditure system should include within itself some of the traits like transparency, optimum allocation of the available resources, accuracy, timeliness, focused and strategic efforts, accountability, flexibility, efficiency in the utilization of resources, etc. (Alexander, 2016). Some of the key problems with the current system in Kariba are listed below: Moving to the cash budget: Under the well-managed systems, there is an approved and well-planned expenditure budget and thefinance ministry should not over exceed its budget, expectations or forecasted amounts. The government should follow discipline in its fiscal policy without being relying heavily on the availability and transfer of cash. Thus, in order to avoid moving to cash budget, it should be properly prepared and followed. Uneven allocation of expenditures not in line with the priorities: The government has defined objectives at the start. It aims to increase the share in social, economic, law and order and reduce the allocation to defence and administration sector in terms of intersectoral distribution, whereas it is aiming to increase the share for primary schooling and health care and decreasing the share for tertiary sector in the intrasectoral allocation. Even after these priorities, resources are not being spent and distributed consciously as planned (Boccia Leonardi, 2016). Huge gap between the official and actual process of budgeting: This is one of the major shortcoming and fundamental issue in Kariba system as it lacks credibility and accountability due to which officers do not take the budgeting process seriously and often end up delegating the same to the inexperienced junior people. This makes the budget and expenditure planning wag and the objectives are not being met and hence, the resources are wasted. Inability to get the timely, accurate and comprehensive reports on public expenditure and revenue allocation: For the respective government departments to function effectively and efficiently, they should have access to the timely and accurate reports on expenditures which will help them to analyse the variations and deviations and help them to take the corrective action, but the same is not available (Dichev, 2017). Failure to put the accountability on one single person or department: Because of the fragmentation between the departments and the central and line agencies, the responsibility for managing the budget is not fixed on any single department. This makes it difficult to make the spending officers liable and accountable for not meetings their targets. Lack of incentives: This is one of the major problems which hinders the appropriate, effective and efficient use of the public resources, as there is no incentive for such an action and meeting the targets. Lack of trust among the agencies involved in the budgeting process: There is huge tension and suspicion among the teams and members in the central and local agencies who are involved in the budgeting process (Goldmann, 2016). The mutual collaboration is missing in the Kariba budgeting process without which it cannot be a success. There are many other small and big reasons for the failure of current system beyond what is stated above in the points. How Philips should approach the issue The above-mentioned problems of public expenditure and revenue allocation needs to be redressed on priority and there are few ways in which the same can be normalised. Incentive is the most effective scheme which can help the people to look more seriously into the public resources system and proper allocation of the same. The disbursements of the funds take place arbitrarily and in a non-transparent fashion which makes it vulnerable to the political intervention and manipulation because of which departments like defence get fewer resources at the expense of cabinet officers priorities. Here are some of the ways that Philips should try out: Cabinet must take the responsibility of proper allocation of the duties and budget to the line ministries and should agree to the fiscal agenda and thereafter do a proper accounting, recording, monitoring and dissemination of the resources and duties to the respective divisions(Trieu, 2017). Permanent secretaries should follow more strict and professional approach and should be made directly accountable to the secretary of the cabinet rather than their individual ministers. A sense of mutual trust and better understanding and collaboration should develop amongst the cabinet department and operating ministries their responsibilities should be clearly defined and segregated with no overlapping. The whole budgeting process should be reinstated and revamped by increasing the accuracy of the forecasting of budgeting estimates, by ensuring that Ministry of Finance takes the process more seriously and a transparent approach is being followed with more involvement of the senior leaders(Kew Stredwick, 2017). Use of the participative budgeting technique instead of the imposed budgeting technique which will help the line ministries to work more independently and set up their own budgets with flexibility such that they are remain within the ambit of the fiscal parameters. The actual and planned disbursements of funds should be co related and the process should be strengthened so that the resources are first being utilised for the high priority areas. This will call for strategic planning within the cabinet ministry and implementation of the same. The larger spending targets should be broken down into smaller time to ensure more accuracy and focused efforts. Public spending which should be a serious capital budgeting procedure is currently a wish list or just a shopping list activity for the donors. The same should be overhauled and the priority projects should first receive the funds. The long hanging projects and even the future ones should be analysed for their rate of returns and the extent to which they meet the current government priorities (Kew Stredwick, 2017). Post proper scrutiny, the amount should be allocated for the public investment program and accountability must be defined. The election in any country poses serious problems within any country from structural point of view. Therefore, for the Karibaian government to progress, it should reduce the public sector size so that amount and resources can be equally distributed among the skilled staff salaries and funding of the basic requirements(Visinescu, Jones, Sidorova, 2017). Thus, Philips through informal accountability system and collective pressure on the ministry can get the above points into consideration to improve the current situation in Kariba. References Alexander, F. (2016). The Changing Face of Accountability. The Journal of Higher Education, 71(4), 411-431. Boccia, F., Leonardi, R. (2016). The Challenge of the Digital Economy. Markets, Taxation and Appropriate Economic Models, 1-16. Dichev, I. (2017). On the conceptual foundations of financial reporting. Accounting and Business Research, 47(6), 617-632. Goldmann, K. (2016). Financial Liquidity and Profitability Management in Practice of Polish Business. Financial Environment and Business Development, 4, 103-112. Kew, J., Stredwick, J. (2017). Business Environment: Managing in a Strategic Context (second ed.). London: Chartered Institute of Personnel and Development. Trieu, V. (2017). Getting value from Business Intelligence systems: A review and research agenda. Decision Support Systems, 93, 111-124. Visinescu, L., Jones, M., Sidorova, A. (2017). Improving Decision Quality: The Role of Business Intelligence. Journal of Computer Information Systems, 57(1), 58-66.