The revised budget estimates for 2008-09 raise many important issues with medium and long term fiscal repercussions.
An important one is the ability of the government to handle the massive increase of expenditure efficiently - budgetary provisions are made without working out project schemes in detail , thus resulting in implementation deficiency and cost over - runs.
transfer of central plan assistance Rs. 87,053 crore directly to state district level autonomous body societies and non-government organisations and not through State governments poses special problems in monitoring the use of funds
Special arrangements like special purpose vehicles (SPV) and Public Private Partnership (PPP) raise problems in monitoring whether full benefits of government funding are realised.
SUPERVISORY MECHANISM
Review of ongoing schemes, projects and activities is crucial to eliminate non-priority and non-productive expenditure. This should cover Plan and non-Plan expenditure including subsidies.
A Fiscal Code of Conduct has to be prepared as guideline for proper implementation of the Act in letter and spirit. Till now we have seen a mechanical compliance with quantitative targets and efforts to stick to deficit targets through off budget items rather than focusing on the basic revenue and expenditure reforms.
Results of progress can be periodically publicized through various means of media including internet.
http://www.hindu.com/2009/05/25/stories/2009052550011300.htm
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