“One government project executive has told Computer Weekly that budgeting in government is a game: if the Treasury and the department in question want the scheme approved, they turn a blind eye to irrationally low initial estimates of the cost and the timescales”
There is absolutely nothing new in the idea of Fantasy Budgets in government
In my time I have dealt with a budget which, year after year, contained provision for a large investment project which would never go ahead. Its appearance was vital to keep, literally, the peace, since it would bring benefit to a group who felt themselves hard done by, but unfortunately it did not fall into the ‘area’ of any of our aid donors
Back then Aid Donors each had their own ‘areas’ which they would be willing to finance: one country did planes, another Pure Water Supply, another roads etc
Each donor organisation had their own rules for how projects should be assessed for economic viability. In one particular case a project which I had (in accordance with the appropriate manual) analysed failed to meet the funding criteria. Oh that’s OK, they said, just change the discount rate to give the required answer
But I treasure one memory above all
An awful lot of work had gone in to one mega project dear to the prime minister’s heart. Despite all best efforts the proposal could not be formulated in a way which even approached financial viability
The governor of the central bank attended the meeting at which the project team broke the bad news to the prime minister
Are you telling me we can’t do it? he thundered, as we quailed. You disappopint me, I expected better of you all
Well, prime minister, said the governor, there is no doubt what all the technical analysis is telling us, that just has to be accepted. But there is always one thing you could rely on if you really wish to go ahead
Yes?
The governor, a devoted catholic, offered ‘The eye of faith’
I think the prime minister found that he had lost the sight in that eye
