No allocation under plan and non-plan heads in Delhi government’s budget for the coming year
The development comes in line with the budgetary reforms being introduced by the Central government for its upcoming budget as it has decided to do away with the five-yearly planning system of the economy, officials said.delhi Updated: Jan 13, 2017 22:52 IST
The Delhi government will do away with the traditional system of budgetary fund allocation under the plan and non-plan head in the upcoming budget for financial year 2017-18. The allocations will be broadly under two major heads---revenue and capital expenditure.
The development comes in line with the budgetary reforms being introduced by the Central government for its upcoming budget as it has decided to do away with the five-yearly planning system of the economy, officials said.
“Delhi government’s next budget will be only in Capital and Revenue allocations. There will be no Plan, Non-plan budget segments,” tweeted Deputy chief minister Manish Sisodia.
Sisodia held a joint meeting with officials of the Planning, Statistics and Finance departments to prepare this systematic reform.
Officials said the new budgeting practice will help in better utilisation of funds. “In the existing system, it was often seen that while funds for any new asset was provided under the plan head, budget for its maintenance would often be under the non-plan. However, from the upcoming financial year, all expenditure allocations will be done only under two heads, Revenue and Capital,” a senior official said.
Revenue expenditure is meant for meeting recurring expenses like salary payment, pension disbursal and other establishment expenses among others. All expenses that are meant for asset and infrastructure creation are called Capital expenditure.
Officials said instead of the five-yearly plan, the government would now focus on having a long-term vision document. “Now the budget will mainly be in form of output, outcome and long-term goals,” an official said.
Sisodia said he has directed the three departments---planning, finance and statistics--- to develop “constant evaluation and monitoring mechanism for entire government functions”.
Sources said the members of these three departments, attached with other departments, would now not be given any other assignment, besides working towards preparing the vision document.
First Published: Jan 13, 2017 22:18 IST