Tuesday, 7 June 2011

Balancing public service budgets fairly

How do you even out public service budgets yearly without encouraging the kind of end-of-year spending blitz that typically happens now? Usually I've heard it's the case that you get only as much as you spent the previous year, so in June all the departments go mad trying to spend the last of their budget to avoid getting it cut down.

My first thought is that you should take the median monthly spending and multiply by twelve. That way you can't buff up your budget requirements by spending in June (end of financial year), because it will get lost in the median analysis, and you can't game the system by spending extra every month because you never know what you'll need at the end of the year.

Mokalus of Borg

PS - On a related note, how do public service budgets get increased when they need it?
PPS - Presumably through hat-in-hand appeals and detailed project proposals.

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