“Supplementary grants without demonstrated need reflect structural weaknesses in budget execution.” Evaluate how this practice affects allocative efficiency. Suggest reforms for rational supplementation.
Kartavya Desk Staff
Topic: Devolution of powers and finances up to local levels and challenges therein
Topic: Devolution of powers and finances up to local levels and challenges therein
Q3. “Supplementary grants without demonstrated need reflect structural weaknesses in budget execution.” Evaluate how this practice affects allocative efficiency. Suggest reforms for rational supplementation. (10 M)
Difficulty Level: Medium
Reference: NIE
Why the question Raised due to recent CAG findings highlighting inflated supplementary grants and poor utilisation across states, signalling weaknesses in budget execution and legislative oversight. Key demand of the question Critically evaluate how unnecessary supplementary grants reflect systemic flaws in budget planning and execution, analyse their impact on allocative efficiency, and suggest reforms to ensure rational, evidence-based supplementation. Structure of the answer: Introduction Give a crisp context on the importance of credible budgeting in ensuring accountability and efficient public expenditure. Body Briefly evaluate the statement by explaining why unnecessary supplementation indicates structural issues in financial planning. Explain how such practices reduce allocative efficiency across sectors. Outline reforms to strengthen the supplementary grants process. Conclusion End with a forward-looking line on the need for disciplined, transparent and data-driven budget management to enhance fiscal governance.
Why the question Raised due to recent CAG findings highlighting inflated supplementary grants and poor utilisation across states, signalling weaknesses in budget execution and legislative oversight.
Key demand of the question Critically evaluate how unnecessary supplementary grants reflect systemic flaws in budget planning and execution, analyse their impact on allocative efficiency, and suggest reforms to ensure rational, evidence-based supplementation.
Structure of the answer:
Introduction Give a crisp context on the importance of credible budgeting in ensuring accountability and efficient public expenditure.
• Briefly evaluate the statement by explaining why unnecessary supplementation indicates structural issues in financial planning.
• Explain how such practices reduce allocative efficiency across sectors.
• Outline reforms to strengthen the supplementary grants process.
Conclusion End with a forward-looking line on the need for disciplined, transparent and data-driven budget management to enhance fiscal governance.