Parsanjeet KourAIR 11 · CSE 2022 · 262 wordsTheir whole copy
Opening · a definition
Budget is the annual financial statement which finds its reference in art 112 and 202 of the constitution. It is presented by finance minister in the floor of lower house of legislature.
Central government has undertaken a number of budgetary reforms to better manage budget and government expenditure. This include-
Body · points
→ Fusion of railway budget and general budget → Moving away with code of presenting budget on last day of february to first day → Getting away with splitting of planned and non-planned expenditure → Stress on performance budgeting and frequent reviews.
These reforms have led to better management of expenditure as
→ It is a step to revive railways which can invest ₹ 10,000 crore annually in it rather than allocating it to government.
→ Its presentation on first day gave benefit of detailed discussion and reduction of financial crunch period post 31-march
→ By not splitting expenditure, feeling of worthless expense done away with
→ Stress on performance led to greater accountability, transparency and efficacy.
→ Notion of top to bottom expenditure, periodic reviews led to pro-people centric budget.
Provided this, still some issues need to be addressed
→ Prudent economic assumptions without real time analysis. → Lack of commitment to meet budgetary deadlines. → Issue of huge unaccounted Non-budgetary borrowings. → Concern of breach of fiscal deficit under FRBM act limit of 40% and 20% for centre and states by 2024-25 → Authenticity of data collected one month early (28 to 01 february)
Close · a way forward
Concerns need to be addressed by taking review of OECD budgetary framework as a way forward.
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