The budget making process _entry pointsPresentation Transcript
Multi-stage processStages of budget making in GOIBudget making of any Ministry or Department is a multi-stage process---every stage --- to introduce genderresponsiveness.Five Year PlanThe Five Year Plan provides the overall direction and basicframework for policies, programmes and schemes for theMinistries and Departments as well as for the AnnualPlans.
Planning CommissionThe first step-PC requests all Ministries andDepartments to set up a Working Group under thechairpersonship of their Secretary—includesrepresentatives from related Ministries andDepartments, non-governmental organisations(NGOs) and experts.Each Ministry and Department also creates Sub-Groups, made up of experts, to undertake in-depth analysis of existing policies, the plan ofaction, programmes, schemes, and theirimplementation.
Working group reportThis analysis should – include analysis of gender gaps, anassessment whether the policy, plan, programme or schemeaddresses the needs of women and girls as well as those of menand boys. Based on this-Sub-Groups come up with a set ofrecommendations which are forwarded to the Working Group.The Working Group of the Ministry or Department consolidates allthe recommendations, including proposed financial outlays, andsubmits these to the Planning Commission in the form of a WorkingGroup Report.PC sets up high-level Steering Committees for differentdepartments, which analyses and holds a series of in-depth . Based onthese discussions, the Steering Committee in turn comes up with aset of recommendations
FinalizationThe next set of discussions -at level of Member-Secretary, Planning Commission. The chair of thesteering committee is the Prime Minister, has aDeputy Chair. There are seven members of thiscommittee including the member secretary. It is atthis level that the outlays are finalised.
MOFEvaluates the amount that each department willget
BEThe allocations decided on by the Ministries andDepartments become the Budget Estimates (BE) forthe Five Year Plan.
Performance and OutcomeBudgetThe budget process -- the approval of the budget by theParliament.The approved budget has to be implemented, and muchwork can be done in monitoring this process. Forexample, has the money allocated for a specific purposebeen spent? Has it been spent properly? Who has itreached in gender terms, in terms of rich and poor, etc?To assist in answering these questions, each Ministry andDepartment is also required to prepare a Performanceand Outcome Budget. These are prepared in the middleof the financial year
ContentsThe documents-contains a brief introductory note on theorganisation and function of the Ministry orDepartment, lists major programmes and schemesimplemented by the agency, its mandate, goal andpolicy framework, budget estimates, analysesphysical performance of each scheme and the linkagebetween financial outlays and outcome, reviewsoverall trends in expenditure over recent years, reviewsperformance of statutory and autonomous bodies underthe administrative control of the agency, describes reformmeasures, and presents targets and achievements andplans for future refinements
Revision of estimatesDuring November-December of each year, everyMinistry and Department reviews its Plan and Non-Planexpenditure. Where considered appropriate, the originalestimates for particular programmes and schemes arerevised, and the Revised Estimates (RE) for the remainderof the financial year indicated to the PlanningCommission.Reporting on actual expenditureAt end of the financial year, each Ministry andDepartment reports the actual expenditure incurred by itduring the year to the Planning Commission.
AuditAfter the year is over, the budget is subject to audit. TheComptroller and Auditor General (CAG) of India studiesthe allocations and expenditure and produces reports oneach Ministry and Department. Each agency is required torespond to the CAG’s comments. Their answers arescrutinised by the CAG, who then prepares a final reportwhich is tabled in Parliament. In the Parliament, thePublic Accounts Committee scrutinises the reportand recommends necessary actions. This brings to anend that particular cycle of the budget.
BE, RE, AEAfter the accounts of the government have beenaudited, the revised figures become the actualexpenditures. The succeeding budget presents thesefigures for the information of the Parliament. Eachyear’s budget document thus includes three sets ofestimates:the allocations proposed for the coming year;the revised estimates for spending in the past year;andthe audited figures for actual expenditures two yearsago.
Public informationthe Min of Finance prepares documents like “Budget at a Glance” , “Budget Highlights” & Thekey to Budget Documents” which provides asummary of planned receipts and expenditures. Itincludes a broad breakdown of planned expenditureinto Plan and non-Plan, by sectors, as well as byMinistries and Departments. It also gives informationon resources to be transferred by the CentralGovernment to State and Union TerritoryGovernments.
STATEMENT No. 20 GENDERBUDGETING Gender budgeting is an evolving area ---more Ministries/Departments arereviewing programmes and schemes to assess the quantum of resources thathave the budgetary potential to impact and address the development needs ofwomen. Ministries/Departments may furnish necessary informationcompilation of this statement in two parts, to the Ministry of Finance viz.Statement 20 or the Gender Budget Statement, of the Union Budget reflectsthe Ministry of Finance’s commitment to Gender Budgeting. This statementindicates in two parts, the budget provisions for schemes that aresubstantially meant for the benefit of women. Two way categorization of GOIare: . Part ‘A’ details of schemes in which 100% of the allocations are for women and Part ’B’ pro-women allocations where 30 % to 99 % of the allocations aremeant for women and girls.
Expenditure sideThe FA is called by the Ministry of Finance & PC and asked about theexpenditure of the amount allocated to his Ministry. -(Entry point forGB)Planning Commission starts meeting with individual ministries in themonth of September-October and reviews ongoing schemes of theministries. -(Entry point for GB)Each Ministry is asked to prepare its demands for the Annual Plan. -(Entry point for GB)Based on the review of the performance and financial utilisation of theMinistry, allocation are recommended by the PC. -(Entry point forGB)Ministry / Deptt. In consultation with PC prepare a schematic breakup. -(Entry point for GB)The Planning Commission conveys to the Ministry of Finance forallocations made to the Ministry/Deptt. -(Entry point for GB)