It’s that time of the year again…

Public servants are always frantic at this time of the year. I hear you collectively asking why? It’s nearing 30 June, the end of the government’s financial year. As such the various departments/ministries/commissions are very *busy*, throwing money around like they were the leader of the free world.

The perverse incentives on government officials to make sure they spend all of their allocated budget in the financial year, while nothing new, always amuses me. They are strongly incentivised to make sure that the kitty is empty come June 30, otherwise they risk having money taken away from them in the following year. You have to ask about the importance of the projects that are only taking place in order to empty the coffers.

As a result of these incentives it’s a very lucrative time to be consulting, even if the gravy train is about as efficient as KiwiRail.

2 replies
  1. Andy
    Andy says:

    Ha ha, I remember when I was living in Japan the construction companies were always stripping perfectly usable roads and paving new surface. The traffic jams were incredible and you always saw the guys in safety helmets and jackets on the road.

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