These “Fit for purpose” articles have sought to analyse some organisational issues that have bedevilled the Government since independence.
They have identified the absence of a coordinating function at the Cabinet level and within the civil service as a critical weakness. Identifying these organisational and structural weaknesses implies that it is difficult, if not impossible, for the existing GORTT management structure to achieve either greater efficiency or more efficient outcomes when implementing government policy.
Organisational weakness leads to weak performance or poor outcomes, which in turn leads to the question, “Who is in control?” The Constitution gives the responsibility to the Cabinet when it says in S75 “… There shall be a Cabinet for Trinidad and Tobago which shall have general direction and control of the Government of Trinidad and Tobago and shall be collectively responsible therefore to Parliament.”
The clause is all-encompassing, and ministers cannot duck responsibility, which they often attempt to do by limiting their constitutional role to simply providing resources to critical state agencies like the police service or the judiciary.
S61 of the Constitution gives Parliament the power to pass legislation by the introduction of bills. S63(2) gives the Cabinet the sole power to introduce “money bills” ie, the power to tax and spend.
These provisions are supplemented by the Audit and Exchequer Act, Chap 69:01 which provides for “the control and management of the public finances of Trinidad and Tobago,” amongst other things.
Perhaps the most important “bill” that articulates government plans is the Annual Appropriation Bill, colloquially called the “budget,” and the budget speech by which it is delivered.
The budget is the Government’s financial plan for the next year, which is presented to Parliament at the beginning of the financial year. It sets out how much the Government intends to spend and on what (hence the term appropriation) and describes the revenue sources to fund this expenditure. The Ministry of Finance controls the annual budget process. The process starts in March, and draft estimates for each ministry or department should be provided by April 30.
These revenue and expenditure estimates are collated by the Budget Division of the Ministry of Finance and must be finalised in time to facilitate the budget speech by October 31.
Invariably, draft estimates are larger than the estimated revenue and must be reduced to match available resources. Therefore, many approved Cabinet notes are excluded from the final estimates based on government priorities and macroeconomic assumptions.
In reviewing projected expenditures by interrogating ministries’ expenditure requests, the Finance Ministry can allocate resources according to policy priorities.
It could be argued that this annual budgeting process plays a coordinating role, thereby mitigating the weaknesses identified in this series of articles.
If there is a dispute, the Prime Minister can intervene and decide as appropriate. This argument does not diminish the lack of coordination after the budget is passed. The speech consists of mere words, and action matters more than words.
The key point is that the public sees control of the budgetary process as the tool that facilitates the Cabinet’s “general direction and control.” Therefore, the Cabinet’s oversight responsibility is not diminished even if the Commissioner of Police has sole discretion in managing the budget allocated to the TTPS.
As far as the public is concerned, the Cabinet must use whatever influence it has to ensure that the TTPS can and does spend the billions allocated wisely. Moreover, to ensure that the TTPS has the institutional capacity to so do.
Since few initiatives can be completed in a year, a multi-year approach is required. As currently presented, the government accounting process is based on cash and does not recognise a multi-year approach. In addition, the presentation method is based on financial accounting, which records how much money is spent, not how much projects cost or will continue to cost.
This makes it difficult for parliamentarians to bring this level of detailed analysis to bear during the debate. This makes the budget speech an important communication exercise. How is progress identified, measured and reviewed?
These are difficult questions. Can the public analyse the performance of a government on specific objectives rather than broad generalisations? If there are changes in priorities, how is this information communicated, and who determines the priorities?
These are critical weaknesses in the current process and are mismatches often not identified in time. Most ministers become aware of the final amounts allocated only a few hours before the budget speech is presented.
The global geopolitical situation is changing rapidly and demands strategic thinking and careful repositioning. Resources have always been scarce but have become more so as the oil and gas reserves diminish.
Wasted resources can never be recovered. All systems must be reviewed periodically to ensure that they are appropriate to the current realities.
If they are not and appropriate adjustments are not made in a timely manner, then resources will continue to be wasted either because they are misallocated or used inadequately.
Mariano Browne is the Chief Executive Officer of the UWI Arthur Lok Jack Global School of Business