It’s national budget season again. Already there are pundits predicting an austere budget due to the financial constraints faced by the Pakatan Harapan (PH) government.

My view is not to despair. We can learn a lot from the recent renegotiations of infrastructure projects. We can also learn a lot from the recent revelation of corrupt practices in high places. A big budget does not mean a thing if the bulk of it is squandered through overpricing and corruption.

A big budget is simply a form of “transfer payments” if it has too much corruption, wastage and overpricing embedded in it. Money changes hands, but with no corresponding transactions in goods or services taking place.

The new government should harbour no fear if the coming annual budget is smaller in absolute terms when compared with the budgets formulated by the previous government.

A smaller budget will not affect the ordinary people if we know where and how to trim the fat. It is corrupt officials, contractors and well-connected business people who will be adversely affected by the cuts. Budget cuts will only result in fewer Ferraris on the road or trophy wives or girlfriends for the well-connected.

I support the finance ministry’s move to do zero-based budgeting (provided this is properly done). Yes, nothing is sacrosanct anymore. The ministry should look at every programme and project anew simply because there is a lot of corruption, overpricing, inefficiency and wastage embedded in them. Some programmes and projects are not even necessary.

I previously mentioned that the government can easily deliver the same output to the people with 20% less allocation, 10% due to overpricing and 10% due to wastage or inefficacy.

I think we can now add another 10% to the amount shaved off due to corruption.

It is not farfetched to ask all ministries, departments and agencies to come up with budgets that are 30% smaller and still expect them to achieve the same output as in previous years.

If we want to achieve great things, it is time to exert pressure. Ministries and agencies must really re-examine their operations. No longer can they be allowed to operate in an unconstrained environment.

It is time to impress upon the controlling officers of ministries and agencies that they must deliver the same output with smaller allocations. If they can’t do it, replace them with those who can.

For far too long, the government machinery has been operating on an “input driven” basis, i.e. to deliver anything extra, more money, manpower and resources must be given. Have we ever compared the cost of running a public university/hospital with that of a private university/hospital of equivalent size?

It is time to change all this – it is time to look at costing, overpricing, wastage, redeployment, redundancy, overlapping, revamping, and most important of all, elements of corruption embedded in each programme or project.

I have deliberately put my views across in a sweeping manner to draw attention and generate discussion. But this does not mean I am a maverick in public administration.

TK Chua is an FMT reader.

The views expressed are those of the author and do not necessarily reflect those of FMT.