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mains Test Series 2018
Q. Timely release of budgetary funds: Discuss the importance of early release of funds in the backdrop of advancement of budget.
Apr 11, 2017 Related to : GS Paper-3

Ans :

Introduction-

This year the central government has advanced the union budget presentation and passed it before commencement of new financial year.  The advancement of budget has helped to release the budgetary funds timely and government has already made efforts to release the funds to concerned ministries. Earlier, one whole quarter of the financial year getting over before the assorted ministries started releasing their budgetary allocations. 

Analysis-

  • Advancing the budget passage and timely release of funds to ministries is welcome move, as till now funds used to reach concerned ministries after a whole quarter. 
  • In our existing budget calendar, the authorization of expenditure comes with the onset of the monsoon. This results in government programmes being relatively inactive in the productive pre-monsoon months.
  • In the new format advancing budget will helps in speeding up investment expenditure in the productive pre-monsoon months, which intern will helps in increasing the productivity. 
  • However, it is not enough. There must be relentless focus on outcomes, not just on spending. Indeed, on some schemes in education, healthcare and water management, the Niti Aayog has created a framework for monitoring measurable progress and states will get ranked on the basis of their score on a composite index. Such focus on outcomes is called for across the board.
  • The government must focus on outcomes by improving the quality of implementation of its flagship schemes, it must enhance efficiency and accountability of the delivery mechanism.

Conclusion-

The advancement of budget and timely release of funds is welcome towards effective utilisation of funds by concerned ministries. It will helps to release the objectives of various policies. But it is alone won’t suffice, government must ensure effectiveness and accountability for realisation of core objectives of government schemes.


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