Non-plan expenses in outcome budget

The government is considering extending the scope of the outcome budget to cover non-plan expenditure, wherever possible, according to a background note prepared by the finance ministry for the Consultative Committee on Finance.

Outcome budgets may also be required to be finalised within three months of the Union Budget, the note said, adding that ministeries would be required to present preliminary outcome budgets along with their demands for grants to the finance ministry.

The outcome budget is a pre-expenditure instrument to measure outputs/outcomes. The current system is built around post-expenditure scrutiny.

Outcomes are to be specifically defined in measurable and monetarable grounds. In addition to benchmarking standards and quality of outcomes, it would include effective monitoring and valuation systems, to indicate the directions for further calibrations.

Involvement of communities, target groups and Panchayati Raj institutions with easy access and feedback systems is also a feature of the outcome budget.

In case of outcomes involving several ministries, a cluster approach would have to be adopted with the administrative ministry coordinating with the others.

The note said the Expenditure Finance Committee guidelines had been modified recently to insist on clear definition of outcomes at the programme or project formulation stage.

A new division called the programme outcome and response monitoring division has been created within the Planning Commission to coordinate this initiative.

The note added that a working group had been set up in May this year to review the system of performance budgets which are prepared by each department at the beginning of the fiscal.

"The committee is expected to give recommendations for improving the outcome focus of performance budgets which will serve as supporting documents for the outcome budget," it said.

FINMIN MOOTS

INVOLVEMENT of communities, target groups and Panchayati Raj institutions with easy access and feedback systems is also a feature of the outcome budget. In case of outcomes involving several ministries, a cluster approach will have to be adopted with the administrative ministry coordinating with the others