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6) What are key functions and Principles of Budgeting in India? How far has India evolved in refining its budgetary processes? Elucidate.(250 words)

Topic: Government Budgeting

6) What are key functions and Principles of Budgeting in India? How far has India evolved in refining its budgetary processes? Elucidate.(250 words)

Indian Polity by Lakshmikant

Why this question:

The question is straightforward and aims to analyse the evolution of budgetary process in India and functions and key principles of budgeting in India.

Key demand of the question:

Analyse in  detail the key functions and Principles of Budgeting in India and its evolution.

Directive word:

Elucidate – Give a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.

Structure of the answer:

Introduction:

In a few introductory lines comment on the significance and uniqueness of the Budgetary process in India.

Body:

In brief discuss –

  • Discuss the historical evolution of budgetary process in India since the British times.
  • Discuss the key functions of a government budget – Public Policy Document, Instrument of Economic Development, public policy document, Instrument of Budgetary Control, Instrument of Accountability etc.
  • What are the important principles like – principle of annularity, rule of lapse, fiscal discipline, inclusiveness, accuracy etc.
  • Reassert the significance in development and growth of the country

Conclusion:

Conclude with reassertion of importance of such processes.