A MACRO-ECONOMIC REVIEW AND ANALYSIS OF THE INGRAHAM GOVERNMENT’S ANNUAL BUDGETARY & FISCAL PERFORMANCE
BY AL JARRETT
The first lesson one is taught in first year business class is defining what an annual budget represents and the basic components it should incorporate. They are essentially five:-
♣ A budget must be realistic
♣ A budget must be measurable
♣ A budget must be predictable
♣ A budget must be achievable
♣ A budget must be adaptable
The other important ingredient is that it should incorporate business priorities for the period projected. This must then be accompanied by a Strategic Plan geared toward managing the budgetary process for results or (MFR). If a budget fails to adhere to these fundamental standards, it sadly would fall into the category of being managed as a result (MAR) or reacting to the results after the “horses have already left the barn”. You see, if you manage for results, you can determine the probability of the outcome of these results. These basic tenets also hold true for a Government’s budget, as a Government is only just another big business.
Mr. Ingraham will now be well-served if he immediately uses the latest consultant’s report done by the IDB. This report indicted his Government for lacking strategic planning and management for results practices. It indicts the Government, stating that those are the reasons for annual budget imbalances and untrained ministerial direction.