The budgetary process underlying the financing of the Ministry for Gozo

Abstract

Purpose: The Ministry for Gozo receives an annual financial allocation by the Central Government to be able to operate. This study will identify and analyse the current budgetary process implemented for the Ministry for Gozo at the Central Government level, determining the roles of the actors involved, and analysing trends and changes in the budgeting process. Design: A mixed-method research approach was adopted for this study. Semi structured interviews were carried out with high-ranking officers from the Ministry for Gozo and Budget Affairs' Division. A questionnaire was also distributed to the Directorates within the said Ministry. Findings: A combination of budgeting techniques are utilised by the different Divisions. The main techniques being incremental budgeting, activity-based budgeting, and programme-based budgeting. Zero-based budgeting is also used in certain circumstances. The role of the Ministry for Gozo is to establish the Annual Budget that will be passed to the Budget Affairs Division. The latter will finalise the definitive allocation, which will then be passed to Parliament for approval. The Directorates who forward their proposals to the top management at the Ministry for Gozo are less likely to be consulted during such process. Inflation, COLA, increase in operating costs and capital projects are some of the factors which have contributed to the increase in funds over the years. Conclusion: The Ministry for Gozo should be allowed more flexibility, in a balanced way, to ensure that decisions are taken based on the best interest of the citizens. There should also be more communications between the different levels of the Ministry for Gozo and Central Government. Moreover, training courses to Directorates should be provided to improve the budgets prepared for the proposed projects. Value: This study may deliver value to the Central Government and Ministry for Gozo by suggesting ways on how the process leading up to the financial allocation can be enhanced.