Business Line ( 07 Dec 2016 ) carries a news report
titled :
" Outcome Budget norms
tightened ; Deadlines will be set to meet Objectives
"
It goes on to read :
-----------------------------------------------------------------------------------------
[ " In order to improve the quality
of public expenditure, the Finance Ministry has tightened norms under which
each ministry and department will have to prepare an Outcome
Budget in consultation with NITI Aayog to achieve certain OBJECTIVES within a TIME FRAME .
As per the Ministry’s directions, every ministry will have to
prepare an Outcome Budget statement linking outlays against each scheme as
well as project with the DELIVERABLES
and medium term OUTCOMES .
A Finance Ministry official, involved in Budget making, said
every “allocation for scheme/project will be against a firm set of DELIVERABLES which will need to be adhered to”.
The ‘Outcome Budget’ is to be prepared after finalisation of
the estimates for budgetary allocation, the official added.
“The OUTPUTS / DELIVERABLES
should be mandatorily given in MEASURABLE / QUANTITATIVE
terms on the basis of parameters and deliverables DECIDED IN ADVANCE in consultation with
Department of Expenditure and NITI Aayog,” the official 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.
The outcome-based one will outline what can be achieved
with what is being spent and will involve the process of defining the desired long-term
outcome of schemes of various ministries. " ]
-----------------------------------------------------------------------------------------
This is yet another example of NDA
government listening to suggestions of ordinary citizens . and implementing the
same , if found useful
Two years ago , on 05 Dec 2014 , I sent following suggestion
to Shri Arun Jaitley-ji (
and sent it , once again before last Union Budget ) :
-----------------------------------------------------------------------------------------
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...BUDGETING BY OBJECTIVES
Somehow , we must bring pressure on Lok Sabha Members , NOT to
approve the forthcoming budget , unless TARGETS are set in advance
-----------------------------------------------------------------------------------------
My fellow Countrymen ( - and women ) :
If you persevere with your suggestions - and never give
up - , you will be heard
But , if you give up , you will have only yourself to
blame !
-----------------------------------------------------------------------------------------
10 Dec 2016
www.hemenparekh.in / blogs
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