BackDe-jargoned: Outcome Budget
This is a blueprint of what is proposed in the Union Budget and its effective output
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After the Union Budget 2016-17 was unveiled by the finance minister on 29 February, the Outcome Budget for the financial year was published on 11 March. Let us take a look at what an Outcome Budget is.
WHAT IS IT?
The first Outcome Budget was brought out in the financial year 2005-06, and since then it has been announced every year. This is a blueprint of what is proposed in the Union Budget and its effective output. It indicates the actual performance of the proposals of the previous few years. Each ministry and department needs to prepare an Outcome Budget with regards to the demand and funds allocated for various purposes. It usually contains seven separate sections relating to seven demands under the Ministry of Finance for which the Outcome Budget has been prepared. These sections are— Economic Affairs, Financial Services, Expenditure, Revenue, Direct Taxes, Indirect Taxes and Disinvestment.
Each section gives details of the statement of outlays and outcomes, reform measures, policy initiatives and programmes initiated, review of past performance, financial review for three years and a review of the performance of statutory and autonomous bodies. According to the Outcome Budget presented by the finance ministry this year, it “reflects the endeavour of the government to convert ‘Outlays’ into ’Outcomes’ by planning expenditure, fixing appropriate targets and quantifying deliverables of each scheme. The ’Outcome Budget’ is an effort of the government to be transparent and accountable to the people." For example, from the Outcome Budget, the general public can get to know if the money allocated for development of education has been used for it.
OUTCOME BUDGET FOR THIS YEAR
In 2015-16, 3,291.2 crore was allocated for railway safety works, which was then increased to 5,015.20 crore at the revised estimate level. And according to this year’s Outcome Budget, as on December 2015, 1,644 crore of the budgeted amount was used.
And according to the statement of outlays and outcomes, a non-Plan budget of 536 crore (projected) has been allocated to promote direct tax collection and its allied services. It also gives details of estimated expenditure for various tasks within the department. For example, of the estimated expenditure, approximately 33 crore has been assigned to make the refund process completely automated and transparent, and around 108.80 crore has been allocated to develop a comprehensive platform for effective utilisation of information to promote voluntary compliance, deter non-compliance and to make sure taxes are paid.
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