Plug wastage in spending before any tax increases

I read with interest about Budget 2017 and the need to increase taxes to support infrastructure and healthcare as the population ages (“New taxes or higher rates needed to fund growing needs”; Feb 21).

I hope ministries and statutory boards treat their allocated budgets like hard-earned monies given by one’s parents to manage. The younger generation groomed to lead the agencies must be taught the value of money. That would help to avoid wastage.

It is easy for a company in a monopolistic situation, or a government, to increase revenue because consumers and citizens have no choice if there are services they need. But we must first look at how taxpayers’ monies are spent.

In a competitive environment, a 10 per cent reduction in company expenses is easier to achieve and has a higher net margin than a 10 per cent increase in revenue. We must plug the holes and pluck the low-hanging fruits.

Having worked with ministries and statutory boards on public projects, I was shocked to see how budgets were spent.

For example, approved funding had to be spent or agencies would risk being questioned, so they chose to spend on unnecessary things via variation orders. Should not savings in projects that are managed well and executed under budget be applauded?

This does not apply only to infrastructural work. If budgets for Residents’ Committee activities are also not spent fully, they risk being cut the following year.

The relevant agencies must understand that not all social activities need a lot of money, and budgetary allocations should be evaluated based on the quality of the activities and for inclusiveness and cohesiveness.

The benefit of renting a bus to take residents somewhere for a free visit versus that of a party with performances and food are important although the expenditures differ.

Spending money is easy but getting the most bang for the buck is more difficult. I hope the relevant authorities can address the concern about how allocated budgets are managed so as to avoid wastage.