Budget overhaul plan: FinMin readies presentation for PM
The finance ministry plans to make a presentation to the Prime Minister on the proposed overhaul of the Budget by shifting to outcome-based budgeting, and merger of rail with the general Budget. Bringing forward the Budget presentation date by a month to January end, scrapping the distinction of Plan and non-Plan expenditure and moving away from traditional budgeting based on inputs to one measurable by outcome are among the five pillars the ministry has identified as part of the exercise. It wants to make a presentation on these points to Prime Minister Narendra Modi before putting them in a Cabinet note for approval, sources in the know said. The necessity and benefits of merging rail with the general Budget will also be featured. It would detail how moving the Budget presentation to January-end will help complete all constitutional requirements before beginning of a fiscal. The finance ministry will float a Cabinet note on this after the Prime Minister gives a go-ahead, they said. Through “outcome-based budgeting”, the ministry is trying to shift from traditional performance-based budgeting by planning expenditure, fixing appropriate targets and quantifying deliverables of each scheme.