1. Preliminary remarks on Budget Outcome Budget and its process Outcomes Conceptual Issues Major programmes and their Outcomes International Experience Conclusions

2. 112. Annual financial statement.(1)The President shall in respect of everyfinancial year cause to be laid beforeboth the Houses of Parliament astatement of the estimated receipts andexpenditure of the Government ofIndia for that year, in this Part referredto as the "annual financial statement. 3. Charged and Voted Charged Expenditure President, speaker and deputy speaker,Chairman and deputy chairmen ofRajya Sabha, Judges of SC, CAG,interest payments and courtdecree/award 4. Capital and Revenue Capital expenditure is the expenditure thatcreates an asset and capital receipt is thatcreates a liability or dissolves an asset Revenue expenditure is the expenditure thatdoes not create an assent and revenue receipt isthat income that accrues without creating aliability or dissolving an asset 5. There is nothing like Budget in the Constitution There is nothing like plan/non-planclassification mandated by the Constitution There is nothing like interim Budget Empowering People 6. Outlays versus Outcomes100. At the same time, I must caution that outlays do notnecessarily mean outcomes. The people of the country areconcerned with outcomes. The Prime Minister hasrepeatedly emphasized the need to improve the quality ofimplementation and enhance the efficiency andaccountability of the delivery mechanism. During the courseof the year, together with the Planning Commission, we shallput in place a mechanism to measure the developmentoutcomes of all major programmes. We shall also ensurethat programmes and schemes are not allowed to continueindefinitely from one Plan period to the next without anindependent and in-depth evaluation. Civil society shouldalso engage Government in a healthy debate on the efficiencyof the delivery mechanism. FMs Budget speech 7. Better reporting system An instrument to link outlays,output and results Method for measuring value formoney Evaluating functioning of theGovernment 8. Parliamentary Committee Committee of officers Guidelines framed by Department ofExpenditure 9. FM concluded that the Budget would signify theoutlay, outcome budget would project intendedoutcome and performance budget would revealwhat was achieved and not achieved. The external agencies would go to the field tomeasure/evaluate whether what was stated in theoutcome budget had actually been carried out. 10. EFC note should include What are thedevelopment outcomes and outputs of thescheme/project? The development outcomesand outputs should be specified in measurableterms along with baseline data against whichthe impact of the scheme will be assessed. National River Conservation Programme setting up of an STP is an output and qualitywater is outcome. 11. Output and Outcomes Outlays are for one year and outcomes comewith a lag Budgets are cash basis and outcomes areaccrual basis Federal structure outlays in the Uniondomain and outcomes are in the States What is an output? Design of the programmes 12. Expected Outcomes: 2005 2012 Universal Health care, well functioning health caredelivery system. IMR to be reduced to 30/1000 live births by 2012 MMR to be reduced to 100/100,000 live births by 2012 TFR to be reduced to 2.1 by 2012 Malaria Mortality Reduction Rate 60% up to 2012 Kala Azar to be eliminated by 2010, Filaria reduced by80 % by 2010 Dengue Mortality reduced by 50% by 2012 RNTCP-2 maintain 85% cure rate Responsive & Functional Health System 13. Fully trained ASHA for every 1000 population Strengthening of health sub centres/PHC Construction of sub-centres Doctors/nurses to be appointed Grants to be released 14. State UTTARAKHAND Rudraprayag (19) Haridwar (72) 53 RAJASTHAN Kota (36) Jalor (79) 43 UTTAR PRADESH Kanpur Nagar (36) Shrawasti (103) 67 BIHAR Patna (39) Madhepura (71) 32 ASSAM Dhemaji (44) Kokrajhar (76) 32 JHARKHAND Purbi Singhbum (26) Godda (64) 38 ORISSA Baleshwar (49) Balangir (100) 51 CHHATTISGARH Durg (43) Raigarh (65) 22 MADHYA PRADESH Indore (40) Panna (93)53otln. of districts Districts with minimum IMR Districts with maximum IMR Range 15. UTTARAKHAND Kumaon HQ (183) Garhwal HQ (190) 7RAJASTHAN Bharatpur (292) Udaipur (364) 72U P Jhansi Mandal (241) Faizabad (451) 210BIHAR Patna (258) Purnia (377) 119ASSAM Barak Valley(342) Upper Assam (430) 88JHARKHAND Chota Nagpur(8) Paragana (325) 117ORISSA Northern (253) Southern (311) 58CHHATTISGARH Raipur (243) Bastar (312) 69M P Gwalior (262) Shahdol (435) 173 16. Improving the nutritional status of children inclasses I-V in Government, Local Body andGovernment aided schools, and EGS and AIEcentres. Encouraging poor children, belonging todisadvantaged sections, to attend school moreregularly and help them concentrate onclassroom activities. Providing nutritional support to children ofprimary stage in drought affected areas duringsummer vacation. 17. Quantifiable deliverablesRegular provision of Mid day meal to 11.36crore children OutcomesRegular provision of Mid day meal allchildren 18. Modern and transparent budgeting, accounting,financial management systems, designed andadopted for all urban service and governancefunctions City-wide framework for planning and governancewill be established and become operational All urban residents will be able to obtain access toa basic level of urban services Financially self-sustaining agencies for urbangovernance and service delivery will beestablished, through reforms to major revenueinstruments 19. - 65 Mission cities have prepared comprehensive CityDevelopment Plans, charting out their long-term visions, andgoals in urban governance and development. - The Memorandum of Agreement in respect of the reformsagenda to be undertaken by States & Cities has been negotiatedand signed with 65 Mission cities. - By 31st January, 2012, 126 numbers of projects related to watersupply, Roads Flyovers/RoB, Drainage/Storm water Drains,Sewerage, Urban Renewal, Solid Waste Management werecompleted under UIG, and 142 numbers of projects related toWater Supply, ------- completed under UIDSSMT. These projectsaim at provision of better water supply, improved road networks,better drainage and sewerage system etc. 20. To complete on-going irrigation/multipurposeprojects in advanced stage of construction andwhich are beyond the resources capability of State Government in a time bound mannerwith a view to a) create additional irrigationpotential and b) derive envisaged benefits fromthese projects. 21. Irrigation potential of 1.2 million hectares istargeted for creation and 10 major /mediumprojects are targeted for completion. We do not know what happened as the Budgetprovisions are made in the Finance MinistrysDemand. SO I WASH MY HANDS OFF So is with JNNURM 22. In recent times many PPP agreements includeclearly defined outcomes, their quality andduration of the assured output. Public service guarantee Act- MP limited toissue of certificates and other minor services. Why not extend PPP agreements to basicnecessities like water, sanitation, transport,power etc.,. 23. Public Service agreements (PSA)-between HM Treasury and Dept.-to improve the outcomes-single delivery agreement shared acrossall contributing depts. developed inconsultation with delivery partners andfrontline workers. 24. of deaths that occurred in 2006, 24 per centwere of people below the age of 70; death rates from coronary heart disease inpeople aged 35-64 in the lowest social classeswere almost double that of those in the highest; 4,000 people still commit suicide each year andsuicide is the second commonest cause of deathin men under 35; men in the highest social class live on averageeight years longer than those in the lowest; 25. reducing the mortality rate by 2010 for cancer by atleast 20 per cent in people under 75, with a reduction inthe inequalities gap by at least 6 per cent; reducing the mortality rate by 2010 for heart disease,stroke and related diseases by at least 40 per cent inpeople under 75, with a reduction in the inequalitiesgap by at least 40 per cent; reducing mortality rate by 2010 for suicide and injuryof undetermined intent by at least 20 per cent; and reducing health inequalities by 10 per cent by 2010 asmeasured by infant mortality and life expectancy atbirth. 26. Programme Objective Outlay Output OutcomeMDM NutritionretentionRs.100 crore No. ChildrenprovidedIncrease inNutritionlevelsDecrease indrop-outJnnurm Financial SelfsufficiencyCivicinfrastructureRs. 100 crore ReformsNo. projectsNo. civicbodiesachieved self-sufficiencyIncreasedwater supply,sanitation,solid wasteetcAIBP IncreasedproductivityRs. 100 crore Completedprojects, areaIncreasedproductivity 27. It is simply a tool for getting better informationabout the true cost of government. It needs tobe used effectively and in tandem with anumber of other management reforms in orderto achieve the desired improvement indecision-making in government.