BUDGETING
BY OBJECTIVES
Dear Shri Jaitley ,
Come Feb 2015 and you will present your Budget in Lok
Sabha
You will allocate thousands of crores of rupees to
different ministries , for spending during 2015-16
You may even increase / decrease their allocations
based on , to what extent ( % ) did they manage to actually " spend "
their current year's allocations
The one and only emphasis is on " spending "
!
As usual , no MP will ask :
" But ,
what exactly did the Minister concerned achieve by spending this money ?
What physical / measureable targets did the Minister
succeed in reaching / exceeding , with that money ? Where / What are the OUTPUTS ?
Why is it that no targets were set in advance , before
the start of the year ?
How come , Minister was allowed to shoot first and then
draw concentric circles around the hole afterwards ( at the end of the year ) ,
to claim BULL'S EYE ? "
In private sector , shareholders / bankers do not
hesitate to sack the CMD / MD / CEO , if he fails to deliver on promised profit
Then , why are Ministers allowed to retain their posts
( - or even get kicked upstairs ! ), despite failing to deliver ?
Dear Shri Jaitley :
MPs should know that YOU cannot answer these questions
, simply because , at the time of the Budget Exercise , no physical OUTPUTS got fixed for each Minister
What did get fixed , were only EXPENDITURE TARGETS !
Simply because MPs passed the Budget without fixing
targets such as following for 31 March 2015 :
* Finance
Minister
> GDP ..... 6 % ............ [ 10 %
improvement ]
> CAD.......( - ) 5 % .....[
20 % improvement ]
* Commerce
Minister
> Exports........ $ 350 Billion .... [
10 % improvement ]
> FDI..............$ 50 Billion...... [ 20 % improvement ]
* Railway
Minister
> Lengths of Tracks...... 125,000 Km..... [ Up by 10 %
]
> No of Passenger Trains / day..... 10,000...
[ Up by 10 % ]
* Health
Minister
> Chronic Hunger and Hunger Related Deaths
8
Million / year .................................... [ Down by 20 %
]
> Under-nourished people..... 200 million.....
[ Down by 10 % ]
* Social
Welfare Minister
> Dowery Deaths / year....... 8,000...... ......[
Down by 10 % ]
> People without Toilets........ 500
Million.... [ Down by 20 % ]
* Agriculture
Minister
> Farmers Suicide/ year..... .. 14,000...............
[ Down by 20 % ]
> Food Grain rotting / year..... 5 Million
tons..... [ Down by 20 % ]
So on and so forth for each Minister
Some caution / suggestions :
* Ignore the
numbers given above. I could be factually wrong
* Focus on the
concept of " Management by Objectives
"
* Overcome the
fear of " failure to meet the targets ".
* Overcome the
fear of " being ridiculed " !
* Don't chop off the neck that dares to stick
out !
* Only failure
is , not fixing the targets !
* Actual vs
Targeted achievements must be measured , on an ongoing
basis , by
totally independent THIRD PARTY agencies
Ministers /
Finance Minister and these Agencies , must agree in advance , how the
Agencies
will go about " measuring " the Actual Achievements
The method
of measurement must be transparent and well publicized
in advance
Agencies
shall have no role in fixing of Annual Targets
That is
best done by the Prime Minister - the CEO , MakeInIndia
* There must
be at least 10 performance parameters for each Minister
* Parameters
themselves could be selected / prioritized , based on an
ONLINE
PUBLIC SURVEY / OPINION POLL , from Govt web site
* If
conducting such an ONLINE POLL for the forthcoming budget is
too late ,
same could be done on a printed form , by current MPs /
MLAs /
Rajya Sabha Members
* Results of
the SURVEY / POLL , must be published
I hope readers of this blog will contribute by passing
on this message to
> all of
their friends / relatives / acquaintances / colleagues
> as many
legislators whose email IDs they can find
> to Shri
Jaitley ( ajaitley@sansad.nic.in / ajaitley@del5.vsnl.net.in )
> Everyone
in their CONTACT list
OR,
> request them
to look it up on...www.hemenparekh.in
Somehow , we must bring pressure on Lok Sabha Members ,
NOT to approve the forthcoming budget , unless TARGETS are set in advance
* hemen parekh
/ 06 Dec
2014
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