Discuss the challenges of implementing outcome-based budgeting in India. Suggest measures to enhance its effectiveness.
Kartavya Desk Staff
Topic: Budgeting
Topic: Budgeting
Q5. Discuss the challenges of implementing outcome-based budgeting in India. Suggest measures to enhance its effectiveness. (10 M)
Difficulty Level: Medium
Reference: InsightsIAS
Why the question The question evaluates the challenges in implementing outcome-based budgeting (OBB) and seeks actionable solutions to enhance its effectiveness in the Indian context. Key Demand of the Question The question demands an understanding of systemic issues in OBB, highlighting hurdles in its implementation and suggesting measures to strengthen its efficiency and accountability. Structure of the Answer Introduction Define OBB briefly and its relevance in improving accountability in public finance. Mention India’s efforts toward adopting OBB as part of budgetary reforms. Body Challenges: Outline the systemic, operational, and institutional issues hindering OBB in India, supported by relevant examples. Measures: Suggest capacity-building, technological integration, performance audits, and enhanced coordination to improve OBB effectiveness. Conclusion Highlight OBB’s transformative potential for fiscal governance. Emphasize the need for robust systems and political will to institutionalize OBB as a long-term governance tool.
Why the question The question evaluates the challenges in implementing outcome-based budgeting (OBB) and seeks actionable solutions to enhance its effectiveness in the Indian context.
Key Demand of the Question The question demands an understanding of systemic issues in OBB, highlighting hurdles in its implementation and suggesting measures to strengthen its efficiency and accountability.
Structure of the Answer
Introduction Define OBB briefly and its relevance in improving accountability in public finance. Mention India’s efforts toward adopting OBB as part of budgetary reforms.
• Challenges: Outline the systemic, operational, and institutional issues hindering OBB in India, supported by relevant examples.
• Measures: Suggest capacity-building, technological integration, performance audits, and enhanced coordination to improve OBB effectiveness.
Conclusion Highlight OBB’s transformative potential for fiscal governance. Emphasize the need for robust systems and political will to institutionalize OBB as a long-term governance tool.