Outcome Budgeting, introduced in India in 2005, requires Ministries to link budget allocations to me…

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Outcome Budgeting, introduced in India in 2005, requires Ministries to link budget allocations to measurable outcomes and performance indicators, shifting focus from input-based to result-based accountability.

True
False

Answer: True

Outcome Budgeting (Ministry of Finance initiative): Key features: (a) Ministries specify measurable outcomes for each scheme/programme, (b) Performance indicators to track progress, (c) Mid-year reviews to assess implementation, (d) Public disclosure of outcomes for accountability. Aims to improve efficiency: funds allocated based on results, not just expenditure. Challenges: Data quality, attribution of outcomes, capacity for monitoring. Part of broader public financial management reforms.

Topic Governance Reforms - Outcome Budgeting

Exam Relevance Public financial management reform question frequently asked in UPSC and SSC exams

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Outcome Budgeting, introduced in India in 2005, requires Ministries to link budget allocations to measurable outcomes and performance indicators, shifting focus from input-based to result-based accountability.