Question 4GS3GS1
How has the budgetary process changed since the last decade? Suggest budgetary reforms that can help in better management of government expenditure. (Answer in 150 words) 10 marks
Introduction
Budget or Annual Financial statement (Article 112) is a document of government's planned spending of resources & cash flows, which liability for a given financial year
26 words
Main Body
Budget projection of revenue for next year. Actual receipt of past year. Economic & financial policy of upcoming year. Budgetary changes since last decade: 1) Advancement of Budget presentation to 1st (earlier- last day of February). 2) Merger of railway budget with general budget. 3) Doing away with planned and non plan expenditure. 4) Increased transparency of in off-budget. 5) FRBM Act & DPMS system. Major issues in budgeting: 1) Little relationship between Budget as formulated & Budget as executed. (G) Not meeting disinvestment targets
2March rush in delay in implementation of projects. 3) Lack of financial devolution to local government. 4) Increasing fiscal deficit & non compliance with FRBM Act. Budgetary reforms for better management of expenditure: 1) Policy shift from outlay to outcomes. The diagram shows: outlay → based on amount allocation → outpost → based on quality assured assumed. 2) BAC Recommendation on: i) Estimates must be based on full & historical & adhoc projects & slums annonment. ii) End to practice of adhoc project & slums annonment. 3) Adoption of modern financial management. Practice like (G) Financial Information System, etc. 4) Revamping of FRBM Act consisting charged liabilities. Since government budgeting is crucial tool of fiscal policy, modernization of budgeting from is initiated.
— Dr. Sachin B L
208 words1 paragraphs
- Clear definition of budget from constitutional perspective
- Specific changes identified with dates
- Mention of relevant acts (FRBM, DPMS)
- Identifies key issues in budget execution
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Topper
Dr. Sachin B L
2023
Subject & Paper
GS3GS1
Topic
Public Finance and Budget
Budgetary Process and Reforms
Budget Management
Writing Stats
234
Total words
1
Paragraphs
Technical and explanatory
Tone