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Outcome Based Budgeting of India Government

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Outcome Based Budgeting of India Government

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Is an approach to budgeting that evaluates how well each ministry and department is doing and how much of their allotted funds they have used.

It is the process of creating budgets by considering how money and anticipated outcomes relate to one another.

Goal-setting varies for example, one may question whether production or result should serve as the foundation for evaluation.

The physical amount of products and services generated by government programs, such as building dams, rebuilding roads, establishing healthcare facilities, and more, is measured by outputs.

The result is an indication of progress made, such as a decrease in illness, a rise in the literacy rate, better infrastructure, and more.

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The Government of India has implemented significant expenditure reforms, including simplifying appraisal and approval processes and eliminating the Plan/Non-plan categorization in budgeting. This integrates cost centers within the statutory revenue capital framework and allows for a monitorable output-outcome framework for public schemes and projects. Since 2017-18, alongside financial outlays, the budget also presents expected outputs and outcomes of schemes in measurable terms, enhancing accountability for executing agencies. Outlay denotes the allocated amount for a scheme, while output refers to direct and measurable program products, and outcomes represent collective qualitative improvements in service delivery.

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Outcome based budgeting provide output and outcome when they allocate the budget. In addition, indicator and target have been listed to ensure funds are in rational distribution

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Accountability: Enhances accountability by clearly defining outcomes and holding agencies responsible for results.

Transparency: Makes government spending more transparent, showing how tax money is used and the expected outcomes.

Efficiency: Identifies inefficiencies, allowing for reallocation of resources to more effective programs.

Effectiveness: Measures program effectiveness and allows for adjustments to improve performance.

Strategic Planning: Aligns budget allocations with long-term goals and priorities, maximizing impact.

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India allocations on anti-poverty programmes, literacy programmes, and primary health programmes are keenly watched

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India allocations on anti-poverty programmes, literacy programmes, and primary health programmes are keenly watched

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Traditionally, budgets were seen as financial statements detailing government spending and revenue. Expenditure projections were analyzed to gauge sectoral priorities, comparing percentage changes to assess relative importance. In countries like India, allocations to key areas like anti-poverty, literacy, and health programs were closely monitored. Revenue sources, including taxes, non-tax revenue, and borrowing, were outlined to support expenditure goals. However, focusing solely on financial outlays may overlook actual outcomes. While budgets express governmental will and fiscal responsibility, debates often arise over whether financial projections truly reflect real-world impacts.

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Promotion of population and Development Education

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Promotion of population and Development Education

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The UGC has been assisting Universities and Colleges for the promotion of Population and Development Education in the university system since 1983. The main objective of the programme is to enable the youth in Universities and Colleges and through them the community to comprehend clearly the issues relating to quality of life, gender equity, reproductive health, AIDS, impact of population growth on society and the nation, etc. The programme is being implemented in the higher education sector through 72 Population Centres functioning under various departments of Adult, Continuing Education and Extension & Field outreach of Universities and Colleges. During 2009-10, an amount of Rs.12.69 lakh has been incurred upto 31.12.2009.

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Implementation of Outcome Budgeting in India

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Implementation of Outcome Budgeting in India

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After its introduction in 2005, outcome budgeting in India moved the emphasis of developmental projects from "outlays" to "outputs" and "outcomes."

Assam is one of the eleven states that have started creating Outcome Budget Statements (OBSs) that are in line with the SDGs. Assam, which led the way in adopting the SDGs in 2016, included OBS into the yearly budget for 2018–19.

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Ministry of Consumer Affairs, Food and Public Distribution use budget to provide food subsidy to Food Corporation of India(FCI) by distribute foodgrains to eligible households and expected result to be food security of the people through distribute subsidized food to targeted population.

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Ministry of Education in India had announced a Samagra Shiksha program (CSS) to enhance the access retention, transition and reducing drop out as their outcome. While they outputs universal access, retention & infrastructure activities.

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Although outcome budgeting is essential for sustainable development, there are obstacles in India when putting it into practice.

On the other hand, it offers a chance to improve national and subnational budgeting procedures, which will help to attain socially desirable goals.

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In the 2024-25 budget, the Assam government is grouping 51 departmental schemes linked to SDGs under thirteen thematic areas to promote welfare and achieve Assam Vision 2030. There's room to enhance outcome budgeting in Assam. Building district officials' capacity improves reporting accuracy, while separately providing state and central outlays enhances transparency.

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Impact of Climate Change - Deep Ocean Mission

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Impact of Climate Change - Deep Ocean Mission

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Modi the current Prime Minister has stated its commitment to green growth and sustainable development, arising from India’s commitments to the global efforts to combat the effects of climate change. Finance Minister Nirmala Sitharaman’s announcements are in line with Prime Minister Narendra Modi’s Glasgow speech in 2021, when the declaration on Net Zero by 2070 was first made.

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Stakeholders could be better engaged.OBB often needs to consult with stakeholders in the formulation of outcome objectives and performance indicators.

Further enhance accountability and transparency.OBB promotes transparency by making it easier for citizens to understand how government funds are allocated and the expected results of these investments.

Resource optimization.It helps to identify ineffective programs or activities, that can be reallocated to more impactful programs.

Performance measurement and evaluation

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Complexity and management burden.Implementing OBB requires defining clear outcomes, setting performance measures, collecting data, and evaluating results.

Focus on short-term goals rather than long-term.

Neglecting to invest in preventive construction for the future.OBB may incentivize a focus on solving immediate problems or symptoms rather than investing in preventative measures that can mitigate future risks or challenges.

Excessive OBB leads to imbalance.

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Is to determine the "unit costs per outcome" and evaluate their level of cost-effectiveness.

Establish a clear link between the government's financial commitments to various programmes and initiatives and the anticipated outcomes of those spending.

It facilitates the alignment of governmental budgets, plans, and policies with the UN-mandated Sustainable Development Goals (SDG).