Captain Nelson Tuhafeni Kalangula
In my last written opinion piece I wrote about the role of an advisor to our government leaders, with the soul aim to clarify on their key role on helping the country make cost saving decisions.
In the latest development it was reported that up to 142 Namibians flew to United Arabs Emirates (Dubai) for the COP-28 summit, the trip is in respect of the global renewable energy efficiency, (with high concentration on the hyped up green hydrogen). The idea is green, however, the biggest questions to ask are – has our country’s challenges particularly during the covid pandemic not taught us anything about over spending? As if we do not have a bloated costly administration team, we sent a large number of associates (including family and friends) to UAE. We need to understand on the importance of running a government with cost saving in mind, our rate of borrowing has been off the roof as with our spending over revenues. What is happening here, where are our advisors to the government, or is the government simply on autopilot and simply enjoyed by associates at the cost of the overall tax payers?
There are various ways a country can save money and spend less, both on the individual and systemic levels. Here are some strategies:
Individual spending:
Ÿ Budgeting and tracking: Encouraging citizens to create budgets and track their spending helps them identify areas where they can cut back.
Ÿ Tax breaks for saving: Implementing tax breaks for saving, like contributions to retirement accounts, incentivizes saving behaviour.
Ÿ Promoting frugality: Public service campaigns and initiatives can normalize and even celebrate frugal living, like cooking at home, buying used goods, and prioritizing experiences over material possessions.
Ÿ Financial literacy programs: Equipping citizens with basic financial knowledge helps them make informed decisions about saving, investing, and debt management.
Government spending:
Ÿ Zero-based budgeting: It is on record that some ministries returns money that was budgeted for their use, and as result they get allocated more in the next financial year. Instead of incremental budgeting, where agencies receive the same or slightly more than the previous year, zero-based budgeting requires justification for every expense, leading to more efficient allocation.
Ÿ Prioritization and cost-benefit analysis: Carefully evaluating programs and spending based on their effectiveness and return on investment helps identify areas for cuts or reallocation.
Ÿ Negotiating better deals: Government agencies can leverage their buying power to negotiate better deals on goods, services, and contracts. To do this we must select our negotiating teams based on merits if we want better outcomes And not those who negotiate for self gains and interest.
– Eliminating waste and duplication: One of our biggest leakages of money is fingered to the duplication of entities such as State Owned Enterprises/ parastatals, which takes away work for the civil servants. Streamlining bureaucracy, consolidating overlapping programs, and tackling corruption can free up significant resources.
– Tax reform: Members of Parliament should be hard at work debating on issues such as closing loopholes, taxing luxury items, or implementing progressive taxation, this can generate additional revenue without necessarily increasing the overall tax burden.
– Investing in preventative measures: Investing in areas like healthcare, education, and infrastructure can save money in the long run by reducing future costs associated with social problems. Especially in the time of now, we have shown signs of being out of line when it come to prioritising for the citizens to benefit.
Public-Private Partnerships (PPP):
Ÿ Leveraging private sector expertise: Partnering with private companies for infrastructure projects, public services, or social programs can access innovation and efficiency gains.
Concessions and user fees: Implementing user fees for specific services or concessions for public assets can generate revenue without direct government spending.– Philanthropy and volunteerism: Encouraging philanthropy and volunteerism can supplement government funding for social programs and community initiatives. The wealthy Namibians should make it fashionable to build schools, clinics, sports fields, and community centres in their home towns or place of residence, this forms part of Corporate and Social responsibility.
It’s important to note that there’s no one-size-fits-all approach, and the best strategies will depend on the specific country’s economic situation, cultural norms, and political climate. Additionally, finding the balance between saving and spending is crucial. While excessive spending can lead to debt and instability, insufficient spending can stifle economic growth and hinder essential services.
Ultimately, saving money and spending less requires a multi-pronged approach that involves individual behaviour change, effective government policies, and collaborative efforts between public and private sectors. One of the main reasons tactics like FIMA are not welcomed by the public servants, because the trust and confidence in our government leadership is reduced based on its previous dealing and track record of mismanagement of public funds via the established High salary paying entities.
It thus creates doubt of leadership in our country, when we witness wrong doing and simply do nothing about it, (Being quite about injustice, means supporting it). How long will our leaders recognise their faults and listen to apply correction. Perhaps 2024 election will give us indication on the next step forward. Namibia is a wealthy country and our people deserve better, are we really leading by example?
(Captain/Flight Lieutenant Nelson Tuhafeni Kalangula is a former Namibian Air force Helicopter pilot, an Aviation Safety and Aircraft Accident investigation certificate holder, Author in the making, with a Bachelor of Commerce Honours and B-Tech Business Administration in academic qualifications.)
