Problem
Transparency International-Kenya (TI) says many people view government as a milking cow when it awards contracts to supply goods and services. TI-Kenya Chapter has advised government procurement agencies to stop the trend of overpricing goods and services being purchased by the government. The government had announced that Kshs 55 billion would be spent on the 472-kilometer Mombasa-Nairobi Standard Gauge Railway, but the cost came to more than Kshs 300 billion, questioning the reasons behind the contract cost.
In a statement, TI-Kenya has challenged government to be more accountable to citizens, especially with regard to public resource management. The institution stated that public procurements were the main area of concern.
Task
1. By use of local examples in Kenya, explain the role of budgeting in the public sector, outlining the various outcomes that effective budgeting can achieve.
2. Demonstrate how an Enterprise Contract Management System (ECMS) can reduce contract costs.