Contents

1. Budgeting: Meaning and Importance 110

2. The Union of India’s Budget 110

2.1. Components of the Government Budget 113

2.1.1. Revenue Account 113

2.1.2. Capital Account 114

2.1.3. Statistics as Given by the Union Budget 2017-18 115

2.2. Stages in Enactment 116

2.2.1. Presentation of Budget 116

2.2.2. General Discussion on Budget 117

2.2.3. Scrutiny by Departmental Committees 117

2.2.4. Demand for Grants 117

2.2.5. Appropriation Bill 119

2.2.6. Finance Bill 119

3. Weaknesses in the Budgetary Process 119

3.1. Weaknesses in Resource Allocation and Use 119

3.2. Weaknesses in the Indian Budgetary System and Implementation 120

4. Budgetary Reforms 120

4.1. Medium Term Budget Frameworks 121

4.2. Prudent Economic Assumptions 121

4.3. Top-Down Budgeting Techniques 121

4.4. Relaxing Central Input Controls 121

4.5. An Increased Focus on Results 122

4.6. Budget Transparency 122

4.7. Modern Financial Management Practices 122

5. Recent Changes in Union Budgeting 122

5.1. Budget 2016-17 122

5.1.1. Rationalization of Centrally Sponsored Schemes (CSS) and expenditure Thereon 122

5.2. Budget 2017-18 123

5.2.1. Scrapping of Plan and Non-Plan classification 123

5.2.2. Merging of Railway and General Budget 124

5.2.3. Budget Advancement 125

6. Evolution of Budgeting 125

6.1. The Line Item Budget 126

6.2. Performance Budgeting 126

6.3. Outcome budgeting 126

6.4. Zero-based Budgeting 126

6.5. Gender Budgeting 127

6.6. E-Budgeting 128

7. GS Mains Test Series Questions 128

8. Previous Years UPSC Mains Questions 133