Mind Map for UPSC Exam (Changes in Budget)
Mind Map for UPSC Exam (Changes in Budget)
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Mind Map Important Topics:
Changes in Budget
Merger of Railway budget with full budget
- The presentation of separate Railway budget started in the year 1924, and has continued after independence as a convention.
- The Railways will continue to maintain its distinct entity -as a departmentally run commercial undertaking.
- Railways will retain their functional autonomy and delegation of financial powers etc.
- The presentation of a unified budget will bring the affairs of the Railways to centre stage.
- Now appropriations for Railways will form part of the main Appropriation Bill.
Merger of Plan with non plan.
- The Plan/Non-Plan bifurcation of expenditure has led to a fragmented view of resource allocation to various schemes.
- Bifurcation makes it difficult not only to ascertain cost of delivering a service but also to link outlays to outcomes.
- The bias in favour of Plan expenditure has led to a neglect of essential expenditures on maintenance of assets.
- Merger is expected to provide appropriate budgetary framework having focus on the revenue, and capital expenditure.
Advancement of budget presentation date.
- Advancement of the date of Budget presentation from the last day of Feb to last days of Jan.
- It will enable Ministries and Departments to ensure better planning and execution of schemes from the beginning of the financial year.
- It will help in utilization of the full working seasons including the first quarter.
- There will be no need for seeking appropriation through 'Vote on Account'. Also legislative changes on taxation can be brought from 1st April.