A Case Study about Victorian Government ICT Strategy
Government relies on information to do its job. It is the basis for sound decision-making and service delivery. Information and Communication Technology (ICT) enables government to manage its digital information, engage and transact with the Victorian public and businesses, and streamline its internal processes. This strategy responds to community expectations and industry advice. It takes advantage of technology changes and a strong local ICT industry, and addresses the investment failures of the past. It aims to rebuild the strong ICT leadership position previously enjoyed by Victoria during the 1990s, so that we can again benefit from successful, innovative ICT initiatives. We want to use information and technology to create better services for Victorians.
In a modern public service, ICT underpins and shapes service delivery. Reinvigorating the way we use information and technology should result in major benefits. ICT provides the channels for government to connect with businesses and the community, it automates processes and it makes transactions more convenient. In a time when global and national economic factors have resulted in significant pressure on the Victorian budget, improving the management and use of ICT provides an opportunity to raise productivity across the public sector.However, ICT management in the Victorian Government is not without its challenges. Government is a complex, multi-organisation enterprise. Accountability and services are traditionally focussed and optimised within each organisation. Cross-agency initiatives can be difficult to implement. The rate of change in ICT makes the Chief Information Officer (CIO) role in private and public enterprises challenging. Keep reading..
A Study about Offshore Evasion Strategy 2013 and Beyond
Executive Summary: Taxpayers are free to spend, save and invest their money wherever they want, but we expect them to tell us about taxable income, gains and assets and pay any tax due. Most individuals and businesses are honest and do pay what they owe, when it is due. But a small minority tries to evade their tax by hiding money and assets offshore, depriving the country of revenues and imposing a greater burden of tax onto the honest majority. That is why HMRC is stepping up our campaign against offshore evasion with a new strategy that involves stronger action, both at home and internationally.
International leadership: The Government is working with the international community to pursue offshore evasion. The UK is a key player in multilateral initiatives such as the G8, G20 and OECD and is signing bilateral agreements with individual countries to tackle offshore tax evasion. These include the Liechtenstein Disclosure Facility, UK-Swiss Agreement on Tax Cooperation and a groundbreaking agreement signed between the UK and the United States of America (USA) last year1allowing for automatic reporting of information and setting a new standard in international tax transparency. The Government has already reached similar agreements with the Isle of Man, Guernsey and Jersey, and is providing disclosure facilities to address historic tax evasion by UK taxpayers. Keep reading…
Case Study about Capital Budgeting Decisions of Small Businesses
Abstract: This paper uses survey data compiled by the National Federation of Independent Business to analyze the capital budgeting practices of small firms. While large firms tend to rely on the discounted cash flow analysis favored by finance texts, many small firms evaluate projects using the payback period or the owner’s gut feel. The limited education background of some business owners and small staff sizes partly explain why small firms use these relatively unsophisticated project evaluation tools.
This paper analyzes the capital budgeting practices of small firms. The U.S. Small Business Administration estimates that small businesses (which they define as firms with fewer than 500 employees) produce 50 percent of private GDP in the U.S., and employ 60 percent of the private sector labor force. Many small businesses are service oriented, but according to the 1997 Economic Census over 50 percent are in agriculture, manufacturing, construction, transportation, wholesale, and retail—all industries requiring substantial capital investment. Thus, capital investments in the small business sector are important to both the individual firms and the overall economy.
SUVs, luxury cars and high end motorcycles to get more expensive in this year’s budget
In his budget speech, Finance Minister P Chidambaram announced a number of changes in excise duty and import duty structures for a few segments of the market. The biggest hit obviously being the hike on all SUVs which will now attract an excise duty rate of 30 per cent as opposed to 27 per cent previously, except for SUVs bought to be used as taxis. The import duty on fully built cars has also been increased steeply from 75 per cent to 100 per cent while the import duty on motorcycles above 800cc has gone up from 60 per cent to 75 per cent.
Justifying his decision on hiking the excise duty for SUVs, Chidambaram stated that SUVs take up more space and are not as fuel efficient as other vehicles, therefore the subsequent increase. Interestingly, the industry was asking the government to slash the excise duty on SUVs from 27 per cent to 22 per cent, but matters seem to have gone the other way around. SUVs have been one of the fastest growing segments in India and while the auto industry overall has been posting a slowdown, the SUV segment has continued to draw in the numbers…
Sectors catering to rural consumption demand, education, housing, infra and lending will benefit, given the FM’s mandate to facilitate growth in the hinterland. Here are the sectors, impact of Union Budget 2013 on them and their concerns along with the top trading picks for investors…
Indian Railway Budget 2013-14 will be presented by the Railway Minister Pawan Kumar Bansal in the Parliament on February 26, 2013. Reports stated that Bansal’s maiden Rail Budget may announce the introduction of about 100 trains, including AC double deckers, new passenger services and extension of services to cater to the demands of various states in the Rail Budget 2013-14.
The announcement will be made for manufacturing of 4200 new coaches including 600 LHB coaches in the Rail Budget, report said. Railways had increased fares across the board by 21% on 22 January, aiming to mop up an additional revenue of Rs 66bn…
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BMC is set to present a Rs 29,000 crore to Rs 30,000 crore budget for 2013-14 with a major thrust on strengthening its current services and completing pending projects. No additional taxes or charges are being proposed, and the civic body is unlikely to announce new projects or schemes. The BMC budget in 2012-13 was for Rs 26,581 crore, 26 per cent higher than the previous year. Civic officials said BMC will place renewed thrust on health, education and information technology areas. For the next year, too, the civic body will devote its resources to ongoing projects. “We will avoid allocating funds for new projects,” said an official.
The ambitious projects taken up during the past three years include complete concretisation of major roads and upgrade of major hospitals. But these are far from complete. The civic body was unable to spend on many projects this year. With a strengthening of its sources of income this year, BMC can provide for a substantial rise in the next financial year. “We are expecting the budget to increase by 10-15 per cent for the next financial year,” said a senior civic official.
Keep reading on BMC 2013-14 budget
Case Study of Loose Budgetary Control in ISD Projects This paper investigates the tightness of budgetary control over projects in a large systems development multinational. This represents a case of extreme ISD failure en mass, where all but 2 of the 22 projects in a business unit went over budget, causing senior executives to refocus their strategic priorities and cancel all current and potential projects that followed. This study focuses specifically on the two best performing and worst performing of these projects.
Despite the fact that overspending is such a concern, little research has focused specifically on how budgeting or other general management accounting techniques are being used in ISD. An analysis of the relevant ISD literature shows that blame is attributed to the developers, managers or customers; the development method or process was flawed, inappropriate or obsolete, the team were not managed, directed and monitored sufficiently, or requirements were poorly elicited because the customers did not know their own business. Rarely if ever is the budget target itself ever questioned.
Studies that highlight these disastrous overruns provide little or no information on how the budget was set, how it was communicated, whether it was attainable, how adherence to the budget was monitored and controlled, or how it was integrated into the performance evaluation and reward functions of the project or organisation. In particular, attention has not focused on the tightness of budgetary control over ISD projects, which is somewhat surprising given the prevalence of unacceptable budgetary performance throughout the field..
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Budget 2013 Not with standing an alleged inflation-growth trade off, high inflation and low growth have bedevilled the Indian economy for more than two years. The fact of the matter is some of the same factors are behind high inflation and low growth. Addressing these factors is crucial to the success or failure of the forthcoming Budget for 2013-14 and RBI’s Monetary Policy Statement. Key to understanding the current situation is the sharp (but different) drops in saving and investment which have not only lowered economic growth but exacerbated the current account imbalance and fiscal deficit.
The large improvement in domestic savings from 26.5% of GDP in 2001-02 to 36.8% in 2007-08 is largely attributable to fiscal consolidation, i.e., additional public savings. About half of this gain has been eroded largely through fiscal stimulus in response to the global financial crisis (2.1% of GDP between 2007-08 and 2010-11 and an estimated 3.2% in 2011-12). There was a compositional effect as household savings in gold and real estate increased dramatically, essentially to hedge against inflation. Prices of both these assets are subject to bubble type effects. If any of the bubbles burst, there could be negative wealth effects…
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The government has been trying to make the tax laws simpler every year; however, there are numerous amendments required in the tax laws. The union budget for the FY 2013-14 will be presented before the Parliament on 28th February 2013 and the finance minister has promised many reforms expected to combat inflation along with stable tax rates. There may also be some changes in the tax slabs to provide some relief from the ever-growing inflation. Here are a handful of the number of amendments expected and predicted by analysts in the Union Budget for 2013-2014.
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