The Expenditure Management System (EMS) in Canada has been a critical provision in the economic, social, and administrative sectors of the country. In the last decade, Canada has performed well economically both in the private and public sectors. This is due to the effectiveness of EMS whose functionality is aided through proper planning. This is evident since the system and effective planning has enabled the country to develop in various aspects.
This has seen it emerge as one of the top 20 economies of the world due to its high GDP that stands at approximately $1.737 trillion (Bernier, 2001). However, there is need for Canada to align its expenditure management system with the current planning policies and guidelines. This is essential in ensuring effective management of government operations and utilization of resources that requires proper scheduling of activities.
Planning is also necessary in the market based economy to ensure well structured expenditure on key business portfolios in private and public sectors. The country has low unemployment and inflation rates. The currency used in the country is the Canadian dollar while the systems are structured to ensure that the country conforms to both the local and international expenditure management provisions (Inwood, 2012).
In the administrative contexts, the Expenditure Management System is an integral element that most of the Canadian institutions should adopt. This is because it encourages accountability through the provision of credible safeguards and control measures that ensures limited wastage of resources. The designing process entails securing viable and superior operating provisions (including IT software) to streamline the integration processes.
Project managers in most institutions should understand their roles in executing the implementation of new EMS. This is to ensure that the project design initiatives are sustainable (Inwood, 2012). They should also identify and put in place requisite infrastructure, human capital, and development of performance-oriented policies to guide the implementation process. Indeed, the government’s scope is to cover the implementation of viable Expenditure Management Systems in line with planning policies to aid operations.
Criticism of the role of EMS
Expenditure management system has played a crucial role in ensuring effective administration of resources in Canada. It has provided the requisite IT support systems that facilitate monetary allocation and distribution.
This has been ensuring accountability and effective utilization of the available resources in both private and public sectors (Inwood, 2012). However, the concept is criticized by scholars who affirm that effective business planning is significant in comparison to EMS. They affirm that effective planning is what can make Canada’s federal and provincial governments to administer their expenditure appropriately.
They state that managing expenditure in a country requires proper planning and execution of activities including major projects based on a clear budget. That is planning facilitates clear identification of key projects, distribution of resources and striking of a balance between payment and income. Planning also ensures absolute adjustment of the relationship between input, output and outcomes in various economies than expenditure management system.
Indeed, planning is a central element that fosters holistic administration of organizational activities. It ensures that resources are allocated effectively, human capital are deployed appropriately and that accountability is enhanced in all the units of operation.
It also facilitates the adoption of federal accountability, code of conduct and training of workers on various issues touching on monetary management. Its holistic solution to expenditure management gives its relevance in steering resource administration in Canada than EMS. This is evident since EMS focuses majorly on providing IT related solutions that only helps in managing laid down operational plans.
That is EMS administers data that is generated through planning in most cases. According to Inwood (2012) there has been laxity in the integration of EMS systems and most individuals do not know how it works in Canada. This gives the need for effective planning whose aim is to facilitate the adoption of best expenditure administration practices as the nation moves to an era of surplus. Planning also gives a clear direction that a business can take in the future than EMS.
In Canada, business planning seeks to be more comprehensive in the current environment in comparison to EMS. This is because planning has expanded to cover corporate issues such as information technology, human resource planning, management of changing demographics and property administration (Bernier, 2001).
The scope of planning that mainly revolved on policy formulation and development of program functions in ministries has been expanded to enhance efficiency in the management of resources. In particular, planning will ensure effective management of the sky rocketing cost o IT infrastructure, changing work patterns and automation of work processes. It also holds the capacity to change work patterns and enhance examination of corporate issues that are fundamental in developing a viable plan of activities in diverse ministries.
Further planning provides proper safeguards in the management of resources and control measures that are executed under well defined authorization process. It facilitates prioritization of policies and the development of ideal work plans that are performance oriented.
Key stakeholders in the Canadian governing system who have benefited from planning processes included government auditors, accountants and doctors. The stakeholders have developed to be strong fans of the system (Bernier, 2001). They discredit EMS effectiveness asserting that its factual nature depends on the laid down plans and manual data that is arrived at after comprehensive planning.
The imperativeness of EMS
As noted the system is set to enable the country to meet its clients’ needs by enhancing effectiveness and efficiency in data and public management. It seeks to align the country’s processes with the modern business and social operating guidelines that are quality-oriented (Bernier, 2001).
The scope also covers the implementation of the new system, the adoption of the best business practices, and enhancement of resource capacity. The project wide scope of operation will be achieved progressively within the set timelines by the coordinators. In the Canada’s context, this is to ensure that the core objectives are met adequately to facilitate effective data collection, processing, storage and distribution to clients.
The management has put in place viable control protocols to facilitate effective execution of the project’s activities. In particular, the scope will be controlled through formulation of viable operating policies, development of proper timelines, setting of realistic goals, software procurement authentication process, and hiring of proficient system administrators.
The controls are to eradicate possible wastages of resources and time, facilitate accountability, ensure strict adherence to the development procedures, and integrate quality provisions in the Expenditure Management System.
It is important to understand that the Canada’s primary economic sector and expenditure management system comprise of the fishery, mining, and the agricultural subsectors of the economy (Bernier, 2001). Fishery subsector remains vibrant in the Canadian economy due to the large access to its effective management through conventional systems. Activities in the sector are driven through proper planning and expenditure management systems that ensure accountability and effective administration of financial crisis in the department.
Bernier, L. (2001). Business planning in Canadian public administration. Toronto: IPAC
Inwood, G. J. (2012). Understanding Canadian public administration: An introduction to theory and practice. Toronto: Pearson Canada.