Skip to content

Public service incentives for the right spending behaviour

25 February 2020
– 1 Minute Read

DOWNLOAD ARTICLE

Another tool that Government would be well advised to start exploring is the concept of value-for-money spending in the public service.

In South Africa, government departments are penalised for not spending all their budgets, so there is a big flurry of spending activity at the end of every financial year. Rather than incentivise government departments to spend everything for which they have budgeted, they should be given incentives to achieve their objectives at a lower cost.

Citizens are likely to welcome the payment of bonuses to teams of government employees or individuals who save money while meeting their objectives. We would all be better off. But as things stand, there is no real incentive for government employees to do more with less.