STPM study materials
STPM study resources

Rural Road Allocation Under a Hard Budget

STPM · Put your knowledge to work in context.

All case studies

Rural Road Allocation Under a Hard Budget

A district office has RM180,000 for rural road repairs this financial year. Three villages submit proposals. Kampung Aman has 420 residents; its 2.8 km road costs RM95,000 and is the only route to a primary school and a rural clinic. Kampung Baru has 260 residents; its 2.1 km road costs RM70,000 and links to a weekly market, but an alternative gravel road is 3 km longer. Kampung Jaya has 150 residents; its 1.6 km road costs RM55,000 and floods for about six weeks each monsoon, forcing a 9 km detour. The total request is RM220,000. The contractor can complete only two sites before the monsoon; the third would be next year. The state assemblyperson wants all three before an election. The district officer must recommend two projects and explain the deferral.

1. Using cost, population, access and risk, recommend which two roads to fund. Show a simple scoring or calculation and justify your choice.

Read the worked answer

Use a transparent weighted screen: access 40%, flood/risk 30%, cost per resident 20%, equity 10%. Cost per resident: Aman = 95,000/420 = RM226; Baru = 70,000/260 = RM269; Jaya = 55,000/150 = RM367. Access scores (1-5): Aman 5 because it is the only school and clinic route; Jaya 4 because the detour isolates the village; Baru 3 because a gravel alternative exists. Risk: Jaya 5, Aman 3, Baru 2. Weighted scores: Aman 430, Jaya 400, Baru 270. Fund Aman and Jaya for RM150,000 and keep RM30,000 for supervision and drainage. This protects the clinic/school route and the flood-vulnerable village. Defer Baru because it has an alternative route and lower risk, even though it is cheaper than Jaya. The scoring is a judgement aid, not objective truth; state the weights so the choice can be challenged and reviewed.

2. The assemblyperson threatens to report the officer for insubordination. Outline how the officer should respond, citing principles of public accountability and documentation.

Read the worked answer

The officer should not trade the recommendation for political favour. Put the decision in writing using the published criteria, record the assemblyperson's request and the reasons for deferral, and copy the state development office. Offer Kampung Baru a place in next year's rollover with a costed design, and tell residents what the delay means for them. If pressed to promise all three, explain that committing RM220,000 against a RM180,000 vote would create an unfunded commitment and an audit finding. Seek guidance from the district finance officer on virement rules; do not split contracts to avoid approval thresholds. This protects both the officer and the public interest, and it keeps the political pressure visible in the file rather than hidden in the decision.

3. What additional data would most change your recommendation, and why?

Read the worked answer

The most decisive data would be a flood-risk assessment for Jaya and a condition survey for Aman. If Jaya's road can be kept open with drainage for well under RM55,000, its priority falls; if the 9 km detour is unsafe or impassable in an emergency, its priority rises. For Aman, traffic counts and clinic/school usage would show whether the route is used by emergency vehicles and school buses. Other useful data: actual repair scope, maintenance costs, contractor capacity, cost overruns, and whether Baru's gravel road is passable during the monsoon. If Baru's alternative fails in heavy rain, the equity case for Baru strengthens. A revised recommendation should state which assumption is doing the most work.