27 JAN,2020 | MEDC
India’s inability to stick to fiscal targets is disconcerting. In this context, we have much to learn from California, which has institutionalized mechanisms to ensure procedural and substantive credibility in budget proposals and their subsequent implementation. It follows a balanced budget principle, pursuant to which, if the proposed expenditures for the year exceed estimated revenue, the government is mandated to recommend sources for additional funding. This helps retain public faith in the governance process. Likewise, our finance minister should lay down a clear road map for expenditure reforms in the budget. These reforms will help to reduce the uncertainty around resource availability and their utilization, and bring about accountability in the system. This is an idea whose time has come, as it will signal that the government is serious about putting its finances in order.
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