The Future of Outcome Budgeting in India: A V...

The Future of Outcome Budgeting in India: A Vision for the Next Decade

Author Name : Narinder Singh Rawat, Dr. Pawan Kumar Patodiya

DOI: https://doi.org/10.56025/IJARESM.2023.117231578

ABSTRACT

Outcome budgeting is a tool used to clearly state the intended outcomes of a given expense, providing a closer examination of spending plans for specific objectives. It aims to make budgeting more cost-effective by emphasizing measurable outcomes and cost-benefit analysis and shift the focus from quantitative output to outcomes that have a positive impact. The outcome budget includes the real financial budget size and physical performance, and the progress made toward objectives is monitored and assessed annually. In 1968, the first performance budget was introduced in four central ministries, and in 2005 the first "Outcome Budget" was presented to the Indian Parliament. Over the years, India has undergone experimentation and reforms to reach the Output and Outcome Monitoring Framework (OOMF), where sector-wise outcomes are developed and integrated into cross-cutting indicators. The OOMF provides ongoing visualization for ministries and departments to achieve the changes they want. However, the use of outcome budgeting has not yet established itself as a reliable fiscal tool that significantly impacts public spending decisions. Despite this, the OOMF should be institutionalized within the government system, as it provides an ongoing process for visualizing changes and monitoring progress. In conclusion, outcome budgeting is an essential tool for financial planning and measuring the effectiveness of government programs. By shifting the focus to measurable outcomes, it can increase transparency and accountability in government spending. The OOMF provides an ongoing process for monitoring progress and achieving objectives, and it should be institutionalized within the government system to ensure continued progress toward cost-effective outcomes.

Keywords-Outcome Budget, OOMF, Outcome Monitoring Framework, OBB, Indian Budget