What Are The Flaws In Budgeting Process In India? | UPSC Economy

The Budgeting Process In India is a complex and dynamic process that involves multiple stakeholders, including the government, policymakers, and citizens. However, despite the elaborate budgeting process, there are several flaws, and challenges that hinder its effectiveness and efficiency.

Inadequate Data Availability

One of the most significant flaws in the budgeting process in India is the inadequate available of data. The lack of reliable and comprehensive data makes it challenging to estimate the budget accurately, leading to incorrect projections and budget allocation.

Quality Of Budget Formulation

The budget formulation process in India lacks proper quality control, leading to budget estimates that are not aligned with the actual requirements. This results in budget allocation that doesn’t adequately address the priorities of the country and doesn’t provide a clear roadmap for the implementation of policies and programs.

Delay in Budget Approval

The budget approval process often takes an extended period, leading to delays in the implementation of the policies and programs. The delay in budget approval is attributed to the lengthy approval process, political considerations, and debates in the parliament

Inadequate Monitoring and Evaluation

Another significant flaw in the budgeting process in India is the inadequate monitoring and evaluation mechanism. The lack of proper monitoring and evaluation leads the ineffective implementation of policies and programs, and a lack of accountability and transparency in the budgeting process.

The budgeting process in India is a crucial process that affects the country’s overall economic and social development. However, the flaws and challenges in the budgeting process hinder its effectiveness and efficiency. To address these challenges, there is a need for comprehensive reforms that ensure transparency, and better data management in the budgeting process.

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