Besides guiding "outcome budgeting", it will help the government conduct independent surveys and evaluations, enable data analysis and assessment of large government datasets, the government said in a statement.
The decision was taken at a Cabinet meeting, chaired by Chief Minister Arvind Kejriwal.
"The newly created monitoring and evaluation unit will create a government-wide roadmap for effective use of modern monitoring and evaluation tools and techniques in government for improved policy making and better delivery of public services," according to the statement.
The decision acknowledges the fact that advances in analytical tools and techniques related to monitoring and evaluation in the last decade combined with an increasing complexity and diversity of schemes warrant a scientific, evidence-based approach to policy-making, it stated.
Deputy Chief Minister Manish Sisodia said it was under the present government that such a "bold vision" for strengthening and modernising the unit of the planning department has been first articulated, and tangible actions towards the same initiated in the form of a comprehensive Outcome Budget for 2017-18.
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