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CSEET · Economic and Business Environment · Indian Union Budget

Outcome budgeting, introduced in India to complement the traditional budget, mainly seeks to:

Outcome budgeting aims to link the money allocated to government schemes with measurable physical outputs and outcomes, so performance can be judged by results rather than by spending alone. It supplements, and does not replace, the Annual Financial Statement presented to Parliament.

  1. ALink financial outlays of schemes to measurable physical outputs and outcomesCorrect
  2. BProhibit any increase in expenditure over the previous year
  3. CConvert all revenue expenditure into capital expenditure
  4. DReplace the Annual Financial Statement with a private-sector style balance sheet

Explanation

Outcome budgeting measures what spending actually delivers, tying outlays to targeted outputs and outcomes for schemes and ministries. It does not freeze spending, reclassify expenditure or replace the Annual Financial Statement, which remains the constitutional document.

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