Topic: Government Budgeting. Investment models.
2. Budget documents aid in understanding the intention of the government, its priorities, policies and allocation of resources, In this context discuss in detail the process of budgeting followed in India.(250 words)
Indian polity by Lakshmikanth
Why this question:
The question is from the static portions of GS paper III.
Key demand of the question:
One has to discuss the process of Budget that is followed in the country and the significance of Budget documents.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Discuss what Budget is in brief.
The question is direct and very much straight forward.
Discuss briefly the concept of Budget, the processes involved; The budget has four stages viz., (1) estimates of expenditures and revenues, (2) first estimate of deficit, (3) narrowing of deficit and (4) presentation and approval of budget.
Explain the role of Budget documents in understanding the intention of the government.
Discuss the importance of having a Budget for the government.
Use an example to substantiate your answer better.
Conclude that When it comes to budgeting, identifying areas of weakness helps the government to allocate resources in a useful and sustainable manner.
Efficient, effective and bottom up budgetary processes help determine efficacy of this planned document.