PAG Public Meeting: Zero Base Budgeting

Wednesday, 22 January 2014 12:24 PAG
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 Zero Base Budgeting

The Isle of Man budget process is a long drawn out affair which starts in earnest in October and continues until its final public announcement during February's Tynwald. This method of compiling the budget across the whole of government has been the same for many years. The next period is broadly based on the previous one.
The coming year's (2014-15) figures will show the need for further cuts in spending, together with the proposal to reduce the number of departments. No doubt there has been feverish activity behind the scenes to collate the figures.
Zero-Base Budgeting is a root and branch approach to building a budget, starting from zero. In so doing taxes and spending, being held in check, are conveyed to the participants.

The process rejects incremental budgeting, where last year’s budget is the starting point. Instead, the starting point becomes zero, with the implication that past patterns of spending are no longer taken as a given.

Liberal Vannin MHK, Kate Beecroft, is well versed in matters financial. Since being elected in 2011 she has analytically attacked controversial government financial measures such as those involving Pinewood Shepperton and the Sefton Group.

Kate has suggested to Treasury that a different approach to budget process be considered and it is this which she will present.
As always with PAG this is a free public event. Please come along and bring a friend.