The key roles of
An Independent Office Of Budgets (OOB) is to inform the Public on the effects
of Proposals & Decisions, to make State Enterprises Attractive to
Investors, to dispose of Loss Makers, to predict Economic Growth and Declines
and to track Sectors & Industries Advances.
Informing
the Public on the effects of Proposals & Decisions via
Media Releases and reports to Parliamentary Committees. Analyzing, using all
sources, Monitoring, via Management Accounting and the Board Of Directors (BOD)
minutes, and reporting, quarterly or as need be on the nation’s current and
forecasted Debt Profile (Sovereign Debt plus Off-Balance Sheet Debt, held by
Majority Owned State Enterprises). Publicly stating the Long-Term
Eco-Socioeconomic impacts, “This Policy or Project present proposal will
increase or decrease Total Public Debt, its bearing on Trade Balances, GDP, and
its effects on Jobs and Wages.”
Making
State Enterprises, and by association the Nation, Attractive to Investors. The
importance of Government’s policy, using Taxpayers funds, to lead Industry
Creation and Sector Diversification is unquestionable. But once such Sectors
and Industries are established, this initial contribution should be reclaimed
to finance further activities or to save as Heritage or Stabilizing Funds. It
is so true that, a nation needs to protect key economic activities, which can
easily be done through Regulations, rather than Ownership. Even though,
Ownership can be financially rewarding, the temptation of Politicians to insert
influence, is too great. The private or public sale of State Enterprises does
not have to divorce the state from dividend revenues but must eliminate
political intrusions.
Disposing
of Loss Makers, only producing additional Debt to the nation. Well performing
State Enterprises, generating earnings, managing debt, and meeting Industrial,
Securities and Exchange regulations should invite buyers at a Fair Value. State
Enterprises, having be monitored from inception and not having met set
expectations, must be quickly and legally shut-down. Pro-Workers Union, but
remembering, Organizations only exist
to satisfy a need, fill a want and solve a problem, not to guarantee permanent
employment and retirement benefits.
Predicting
Economic Growth and Declines. Economic Growth is based on Supply and Demand
measurements. Supply decreasing and being lower than demand. Demand increasing
and being greater than supply. In other words, Markets are willing and able to
pay more than products cost to produce. On the other hand, an Economic Decline
is a factor of Competitiveness. If the same Markets can find another supplier
willing to sell on par products at a cheaper price, it will, and that will
result in decrease product sale revenues. Such a cheaper price can be
accomplished through a cheaper workforce, more efficient production,
technology, transportation and storage processes. Simply, by not investing and
keeping up with Research & Development can cause declines.
Tracking
Sectors & Industries Advances. Trending Research & Development, Process
Modernization and, most importantly, protecting the Brand. Expensive, and
because of that high cost, normally left to industry associations, to share
among its membership, the monitoring of Trending Research & Development is
essential, in product costing and to protect Market Share. Process
Modernization is also crucial for competitiveness, with timely scheduled
maintenance, technology upgrades to processes, plant and equipment, while
improving efficiencies and managing margins. Budgets must therefore,
incorporate such activities to maintain relevance. The Brand, consisting of
Patents, Copyright, Trademarks and other Legal Contracts, the Product,
Distributor, Manufacturer and Country Names and Images, all must be protected,
to maintain and add value to the Organization, Industry and Nation.
The
accuracy of Data - figures coming out of the Central Statistical Office as it
undergoes its change to the National Statistical Agency, is under question as
no additional allocations were made to correct its staffing issues. Noting,
this is the starting point of the nation’s next budget…
The
nation’s next budget must also be configured from historical Data – figures
from the Auditor General Reports reviewing the economy. Another understaffed
and underfunded Agency, which must be trusted, no new undisclosed unexpected
surprises to be borne by taxpayers…
Rationale
T.A.J
& Associates Company Limited
uses this occasion to comment on topics that have been covered, both academically
and by the mainstream media, to add its opinion and point out investment
opportunity, not to invoke any social action.
