Rwanda car regime Ok
Sep 02, 2005
RWANDA has recalled over 1,000 official vehicles from public servants and will auction them in a measure to cut public expenditure.<br>Only five officials, including the President and the Prime Minister, will keep official vehicles, otherwise all other officials will use private transport firms.
RWANDA has recalled over 1,000 official vehicles from public servants and will auction them in a measure to cut public expenditure.
Only five officials, including the President and the Prime Minister, will keep official vehicles, otherwise all other officials will use private transport firms.
Interest-free loans will be offered for buying private vehicles, which can also be used for official work.
Rwanda says it spends $3.5m a month to maintain its fleet of cars. Uganda’s expense is greater, given the bigger size of its government operations. Rwanda is lamenting abuse, like private business. Uganda has a similar problem.
Kigali’s is progressive reform that should do that country well. Rwanda, like Uganda, is heavily donor- dependent for budgetary support, and rationalised use of scarce finance can only be good for the economy.
There is a tendency for many of the poorer economies to have a bloated public service and disproportionately large bill. Car purchase and maintenance, partly because of abuse, but also due to sheer absolute numbers of big, expensive official vehicles on our roads, costs the taxpayer dearly.
Rationalising the official vehicle regime would cut costs substantially. For instance, if aid of $100m were given for malaria control, not all that money would go into purchase of medicines and equipment. Large proportions would be used to buy vehicles for the project and other expenses like rent and allowances. Cutting these administrative costs would free up funds for the crucial work.
National Water, Shell Uganda, and New Vision are some of the bigger (financially sound) institutions that have cut official vehicles and invested the monies so saved elsewhere. National Water is saving sh326m annually from scrapping 40 official vehicles.
In 1986, the government instituted a tough regime that barred official cars from moving after 5:00pm and at the weekend. Cheaper but sleek vehicles were bought for ministers. It is not too late to return to that.
Only five officials, including the President and the Prime Minister, will keep official vehicles, otherwise all other officials will use private transport firms.
Interest-free loans will be offered for buying private vehicles, which can also be used for official work.
Rwanda says it spends $3.5m a month to maintain its fleet of cars. Uganda’s expense is greater, given the bigger size of its government operations. Rwanda is lamenting abuse, like private business. Uganda has a similar problem.
Kigali’s is progressive reform that should do that country well. Rwanda, like Uganda, is heavily donor- dependent for budgetary support, and rationalised use of scarce finance can only be good for the economy.
There is a tendency for many of the poorer economies to have a bloated public service and disproportionately large bill. Car purchase and maintenance, partly because of abuse, but also due to sheer absolute numbers of big, expensive official vehicles on our roads, costs the taxpayer dearly.
Rationalising the official vehicle regime would cut costs substantially. For instance, if aid of $100m were given for malaria control, not all that money would go into purchase of medicines and equipment. Large proportions would be used to buy vehicles for the project and other expenses like rent and allowances. Cutting these administrative costs would free up funds for the crucial work.
National Water, Shell Uganda, and New Vision are some of the bigger (financially sound) institutions that have cut official vehicles and invested the monies so saved elsewhere. National Water is saving sh326m annually from scrapping 40 official vehicles.
In 1986, the government instituted a tough regime that barred official cars from moving after 5:00pm and at the weekend. Cheaper but sleek vehicles were bought for ministers. It is not too late to return to that.