Friday, February 12, 2010

Ar. MCS. Rajaraman, Tiruchi

At present the budget presented is in the form of a text with running paragraphs of nearly 100 or more which seldom attract the readers of public interest. Only those who are having access to particulars behind or annexed to the budget can have critical analysis over it and come out with their remarks. They will either appreciate the budget if it favours their sector interest or speak otherwise. So also the case of politicians as it is purely based on their support to ruling government.

The presentation should be in such a way that even a lay person understands and analyses the issues in the budget. Further more it should be prepared and presented in such a manner which will help the presenter to self evaluate before it is presented and make it easy for post evaluation exercise by different sections of the public without getting misled by for and against lobby. The budget format should be in a self-evaluation formatting which according to me as designed in a tabular format as annexed to this. Budget report should be in 4 parts.

Part 1: Previous Year’s Budget Performance Cum Evaluation Report

Part 2: Budget Proposal for the Future Year.

Part 3: Department Wise Policy Note

Part 4: Consolidated Policy Note

Ø In part 1, department wise performance, deviations, shortfall, excess and justifying reasons for the them should be given.

Ø In part 2, the future forecast - estimates of income and provisions of expenditures etc. department wise explaining the avenues of income and necessity of expenditure and ways & means to meet the deficit should be given.

Ø In part 3 are the Department Wise Policy Notes. Department wise various government flagship schemes and the fund provisions there for.

Ø In part 4, the consolidated deficit should be taken for discussion elaborately describing the proposed change of various Direct and Indirect Tax Structures - introduction, abolition, revisions - additions, enhancements, deletions; reductions etc. to offset the deficit position are to be detailed.

At present the practice of budget presentation by the state governments/local bodies or any other quasi governments is only after the Budget presentation by the Union Government or State Governments as the case may be. In other words the subordinate bodies are presenting the budget to tune with the provisions of the budget of the upper bodies. The details of demands and the potentials of the lower strata are not obtained after due discussion debate and approval in their respective forums/councils/committees/bodies etc. well in advance.

First of all. Village Panchyates and other Local Bodies, State Government Departments, Establishments etc should project and present their achievements, revenue exercises, demands, requirements etc. in the form of a Budget with their inspected and reviewed Annual Administrative Reports and audited Annual Financial Statements to the State Government or Union Territory as the case may be. The State Governments or Union Territories, after consolidation of their revenue estimation, expenditure requirements, and demands etc. under their governance, they approve the budgets in the assemblies and send to Union Government for National Budget.

The departments in the Union Government should consolidate the details under various heads of income and expenditure and help prepare consolidated National Budget

* In the case of Railway budget it is presented before the union Budget. Will it not come under the Union activities nor is the ministry one among others. But not other surface/ air transport authorities or other ministries are allowed to come forward with their estimations and provisions. Why?

Ø Then, recognized non -governmental organizations including political organs should be asked to present their proposals duly approved/resolved by the respective governing bodies before hand. It is an annual exercise too to them to showcase their real interest in the welfare of the people. This will really help the job of the budget presenting government to include or avoid discussing and explicating the reasons for the possibilities of implementing the proposals of various non government or government organs. This will also avoid post budget meaningless cue and cry.

Ø Next comes the role of the media especially the print one. The Fourth Estate is not less equal to the government.They are having a pucca organized networks and intelligentsia supported by the general public and wide range of knowledge and experience in every walk of life and death. As it is so, why not do they volunteer with a comprehensive Post Budget Performance Evaluation Report and Pre Budget Proposal as a duty of Media-Corporate Social Responsibility? The culture of post budget editorial write- up will no longer serve purpose as it is a type of whistle blowing without minding whether it reaches out to the expected end or not. The media should take up the review work and evaluate the performance of each department and publish a report to that effect well in advance. The Annual Administrative Reports and Audit reports of Government Departments/ Local Bodies / Government Establishments are not made available to the public either through official publications or through public-conscious print mediums. The Fourth Estate should lead the Nation in all respects.

Ø If the budget is presented in the like manner and the format annexed people like me are able to comprehend and interpret and to come out with future fruitful suggestions. The budget is not meant for the elite, erudite, the haves and the like alone to be presented as is at present. Majority of the population is not worried about or aware of the forthcoming budgets as they are struggling hard to make their hands and mouth to meet because of uncontrollable (in fact, rather controllable by the rulers) price spiral of foods and essentials.

Thanking You,

Yours faithfully,

Ar. MCS. Rajaraman

B-77 Jai Nagar,

Thiruverumbur,

Thiruchi 620013

manexcel@yahoo.co.in

cell # 9442582105

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