Revision of Ministries’ Budgets Leaves Room for Questioning
In a move that has raised eyebrows, the budgets of two key ministries have been revised through appropriation warrants, only to fall short of covering additional expenditure.
Background
According to reports from the Office of the Financial Secretary, the Ministry of Education and the Ministry of Foreign Affairs and Aviation exceeded their original budget allocations by $14 million and $230,000 respectively. However, a subsequent review by the Accountant General’s Department revealed that the revision of budgets was based on information that may not have reflected further revisions.
The Discrepancy
The Auditor-General’s report highlights a “timing issue” as the cause of the discrepancy, but it remains unclear whether this is sufficient to account for the significant overspending.
Other Ministries’ Budgets
Eight other ministries also submitted appropriation warrants in excess of $1 million to cover additional expenditures. The reasons cited for these requests range from payment for due diligence expenses and extra salaries to additional funds needed for personal emoluments and unforeseen expenditure.
- Ministry of Finance: Originally allocated $245 million, revised upward by $16.2 million to accommodate unforeseen expenditure
- Other ministries: Requests ranged from payment for due diligence expenses and extra salaries to additional funds needed for personal emoluments and unforeseen expenditure
Response from the Office of the Financial Secretary
In response to queries from auditors, the Office of the Financial Secretary maintained that the revision of budgets via appropriation warrants was necessary for transparency purposes, despite the availability of funds under other heads. The Ministry of Finance remains open to discussion on best practices for handling such matters in the future.
Call for Greater Accountability and Transparency
The National Audit Office has called for greater accountability and transparency in budgetary processes to prevent similar discrepancies from arising in the future.