FG TARGETS END TO POLICY SOMERSAULTS, PLANS MANDATORY IMPACT TESTS

The Federal Government is planning to introduce mandatory impact assessments for policies as part of efforts to reduce frequent policy reversals and improve the effectiveness of government decisions.

The proposed measure is aimed at ensuring that policies are properly evaluated before implementation, with greater attention to their potential economic, social and administrative consequences.

Frequent policy changes have remained a concern for businesses, investors and households, as sudden adjustments can disrupt planning, increase operating costs and weaken confidence in government commitments. For investors, policy uncertainty can make it difficult to assess risks and make long-term financial decisions.

Under the proposed approach, impact assessments would help policymakers identify potential benefits, costs and unintended consequences before introducing new measures. Such evaluations could also provide an opportunity to consult relevant stakeholders and examine how proposed policies might affect different sectors of the economy.

The initiative could improve coordination among government ministries, departments and agencies by encouraging evidence-based decisions and clearer implementation plans. It may also help identify practical challenges that could undermine a policy after it has been introduced.

For businesses, a more predictable policy environment could support investment planning, job creation and expansion. Consistency in government decisions is particularly important in sectors such as manufacturing, energy, agriculture and infrastructure, where projects often require substantial capital and long implementation periods.

However, the effectiveness of mandatory impact assessments would depend on how the framework is designed and enforced. Assessments would need to be credible, transparent and supported by reliable data rather than treated as a procedural requirement.

The government would also need to establish clear accountability mechanisms to ensure that findings inform final decisions and that policies are reviewed when circumstances change significantly.

If implemented effectively, the proposed framework could strengthen public-sector accountability and reduce avoidable disruptions caused by poorly evaluated policy decisions.

The broader objective is to establish a more predictable and evidence-driven system of governance in which policies are assessed for their likely impact before implementation and monitored to determine whether they are achieving their intended outcomes.