Day 29 – Q 5.Critically evaluate the budgetary reforms taken by the government in the recent past.
5. Critically evaluate the budgetary reforms taken by the government in the recent past.
हाल ही में सरकार द्वारा उठाए गए बजट सम्बंधित सुधारों का समालोचनात्मक मूल्यांकन करें।
Synopsis:
Annual year financial statement laid out by financial minister according to article 112 one month in advance have taken many reforms to concretize the efforts to overhaul economic growth The government has decided to carry out three kinds of changes in the Union Budget:
- To advance its presentation by 27 days to February 1st.
- To do away with a separate railway budget.
- To dispense with Plan-non-Plan dichotomy in expenditure.
Advancement of union budget:
- The proposal for a change in the budget presentation date was first mooted by some of the government’s senior most bureaucrats as part of a ‘Transforming India’ initiative.
- If the Budget is read in January and passed by February-March, it would enable the government to do away with a vote on account for the first three months of a financial year.
- It would also help the private sector to anticipate government procurement trends and evolve their business plans. And, civil society could deliberate on and give feedback in time for the parliamentary discussions.
Merger of railways with general budget:
This move is being lauded for it will be beneficial for the economy at large and there will be positive influence in the development in railways.
- Leads to better policies: Now that the Railway budget will be introduced along with the union budget, there will be less wastage of time when a new policy is to be initiated and implemented.
- Keeping them separate resulted in a lot of drawbacks and hindrances that had to be faced by the railway ministry before it could decide upon a solution.
- Our railways are running on loss. There are lesser funds for development plans and most of them are wasted in wrongful manner when there emerges a demand from the regional MLA who promised new trains and stoppages for their location during the time of election.
Do away with plan and non-plan expenditure:
- After abolition of planning commission there is no need for plan and non-plan expenditure as such, so it is better to do away with it.
- Removal of plan and non-plan classification of expenditure to facilitate a holistic view of allocations for sectors and ministries.
- This will help create a clear and effective link between the government’s earnings, spending and outcomes
- In the earlier system, more emphasis was on planned expenditure, but now focus will be on all expenditures of the government, giving a more overall picture.
Conclusion:
These reforms make sense, but Budget reform has to go further, to incorporate a multi-year time horizon and shift to outcome-linked expenditure management, as had been recommended by a committee headed by C Rangarajan in 2011.
Best Answer: tukaram pawar
