Governments over the world are being accused of wasting tax payers money on unnecessary expenditure. Priorities of governments at times usually are not in line with realities on the ground and within no time, money may be spent on projects that their aims have nothing to do with the communities living around the project areas. Governments waste money by constructing projects that become white elephant projects at the end as there is no use for them as intended before.
Governments waste money through dubious local international and international deals that they enter without proper measures taken to protect the public’s money when they don’t happen in the end. When a project is cancelled at the end and no work is yet to be done, it may happen that the government is forced to make payments for not fulfilling their part of the bargain as earlier agreed. This is normally projects or contracts started with the aim of defrauding the government of funds mostly through corruption.
Tax payers’ money is lost through overpricing of products and services by people who supply the government agencies. Products and services are highly overpriced when compared to average market rates in the country. The government loses the extra funds due to the over-payment of the particular products.
Public funds are lost through other ways like double payments for goods and services offered by different government agencies whose roles overlap each other. A government health agency may have oversight roles over a particular area that is being served by another government entity. This may be ignored but in real sense, it is a way that the government wastes money which adds up to millions when everything is factored in.
Governments waste money through the spending of the huge budgets on wages and salaries to bloated civil services that does not provide value for money. Many governments have bloated civil servants who do not have much to do in the offices and many government agencies but have to be paid at the end of the month. They get to earn salaries with no equivalent job done. When taken into account, the governments will realize much money is also lost through ghost workers who are paid but they do not actually exists in their work stations as they appear to be in official documents. Ghost workers are a common problem in many countries and eradicating them has proved a challenge for many countries so far.
Government workers are known for their extravagance when it comes to expenditures involving the funds belonging to the government. They plan for expensive trips to exotic destination for functions or meetings that would otherwise be held within their boundaries and at cheap prices. This is a way that governments waste money and they should have caps that protect such from happening.
Governments of poor nations are known for their insensitive spending when they spend excessively on lavish parties for state guests and giving state gifts to people who would otherwise not deserve such. All this is at the expense of their general public that is surviving on little. This is another way the governments lose money.