This archive report was first published on 13 June 2020.
As the country navigates the challenges of the Covid-19 pandemic, the 2020 Budget's focus on fiscal discipline and realism is a refreshing change. The new Cabinet Secretary, Ukur Yatani, has made a commitment to present a budget that is grounded in reality, rather than the previous practice of increasing budgets year on year to meet unrealistic expectations.
Indiscipline has been a major problem at the Treasury, with the previous administration's lack of accountability and reasonableness contributing to the issue. The new Cabinet Secretary has taken steps to address this, including rationalizing the budget and identifying areas of savings, particularly in recurrent expenditure.
One area that has been identified as a major contributor to indiscipline is travel. In some cases, as many as 60 people have been sent on a single mission that could have been executed by just five people. This is just one example of the lack of planning and discipline that has plagued the government's spending habits.
Another example is the practice of replacing furniture and ICT equipment at the end of financial years, simply because there is unspent cash that must be surrendered. This is a clear case of indiscipline and lack of planning, and it is not just recurrent expenditure that is affected.
Development expenditure, which is meant to provide or improve infrastructure for education, health, transport, security, and housing, is often wasted just as much. This is despite the fact that all government allocations are made against a specific project, making it implausible that cash can remain unspent for months while a project identified as a priority wastes away.
Some projects have become cash cows for corrupt officials, who connive with implementing agencies to ensure delays to completion, leading to cost escalations and cash theft. The new Cabinet Secretary has his work cut out, but he has started well. The Covid-19 pandemic complicates his assignment, but he should focus on the big picture, as the pandemic is not going anywhere.
With sustained pressure on his team to perform, they will force an ethic of discipline on others, and even with a modest improvement, the effect on the ground will be profound.
— Tom Mshindi is a former Chief Editor of the Nation Group and is now Managing Partner at Blue Crane Global consulting.
