MANAGEMENT AND CONTROL OF GOVERNMENT EXPENDITURE

Let me move on to inform the House of the various initiatives taken to better manage and control Government expenditures. I have already touched on the progress made in the Zero-Growth in Manpower Policy. Let me speak briefly now on the programmes to set up Management Accounting Systems and to conduct zero-base reviews in all ministries. Management Accounting Systems

As I mentioned in the House last year, computer-based Management Accounting Systems, or MAS for short, are a powerful tool for identifying inefficient, wasteful or unproductive activities. With an MAS, ministries can redeploy manpower from low-value activities with confidence, knowing that there will be no deterioration in the quality of public service. With accurate costing information, ministries can also confidently farm out activities to the private sector, which are not cost-effective for the public sector to undertake. In short, ministries can be more pro-active in managing their manpower and funds allocated under the Block Vote Allocation System.

I am pleased to say that work on the development of the MAS is progressing on schedule. By April this year, the Ministries of Finance, Education, Health, Environment and National Development will have working management accounting systems. Management accounting systems for all the other ministries are expected to be implemented by mid-1993.

Zero-base Reviews

Zero-base reviews by the Auditor-General are an important part of our efforts to keep Government programmes and practices up-to-date, relevant and cost-effective, and to eliminate waste and inefficiencies. Reviews of the Ministry of Home Affairs and the Inland Revenue Department were completed in FY91. Reviews of the Ministries of Education and Trade and Industry are underway and should be completed by the middle of this year. Over the next one and a half years, zero-base reviews for another 5 ministries and 2 organs of state will be carried out.