Saving or underspending

IF money unspent is tantamount to money saved then it sounds acceptable if you’re an economist or accountant; implying some fiscal prudency has been applied. If, however, not all the money allocated for a good cause is spent then that practice of not spending all the funds allocated could be viewed as responding in an irresponsible and negligent manner and an explanation should be demanded.

An example could be where funds were allocated to supporting digital technology for children in remote areas in Fiji in order that they can enjoy uninterrupted connectivity and virtual classes during the pandemic. If there were some children who missed out and not all funds were expended for this purpose then this is terribly wrong.

In organisations, especially NGOs who fail to spend donor funding for the purpose intended, it can be viewed as not having the capacity to do so. When further funding is requested, the organisation should not be given as much next time and usually isn’t unless of course the donor has more money than sense and the money is usually that of the hard earned tax payer, to boot.

In this case as reported recently (FT 4 Oct. ‘21), the Education Ministry failed to spend $18 million of funds the Government had allocated for educational purposes. Instead of giving the impression the unspent funds are ‘a saving’ as in a blessing for the government, this significant shortfall in spending should not only be frowned upon but thoroughly investigated.

Wine in a glass half empty does neither taste nor smell as sweet as wine in a glass half full.

JULIE SUTHERLAND Tamavua, Suva