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Way Forward

Appropriate Centre-State institutional framework should be created to standardize set of output indicators and processes for collecting and collating outcome related information.

Effective feedback system such as social audit is required in implementation of every programme.

The country needs to evolve ways and means to strengthen its institutions, without undermining them. Following steps have to be undertaken in this regard:

o strengthening the Public Accounts Committee

o professionalising the internal audit and vigilance organisation in the ministries

o building capacities for risk management techniques in the programme divisions

o making budget division and budget formulation activities independent of the executive to improve the outcome of programmes.

o as the outcome may not be co-terminus with the period of the budget. There needs to be defined intermediate outcomes as well.


 

4. "Good economics and bad politics cannot coexist in a sound budgetary process" Discuss.Answer:5. “Unspent provisions in a grant or appropriation indicate either poor budgeting or shortfall in performance or both”. Elaborate this statement in the context of budgeting in India. Also suggest few remedies to overcome it.Answer: