Topic: Government Budgeting.
4. The budget in India is not just a financial statement but a comprehensive policy document that guides the economic and social direction of the country. Analyse. (250 words)
Difficulty level: Easy
Reference: Down to Earth , Insights on India
Why the question:
To start the process, the budget division issues an annual budget circular around the last week of August or the first fortnight of September every year.
Key Demand of the question:
To write about the weaknesses in the budgetary system and measures to overcome them.
Directive word:
Analyse – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary.
Structure of the answer:
Introduction:
Begin by defining budget and major objectives of budgeting.
Body:
First, elaborate up on how budget provide framework of achieving annual objectives.
Next, write about the weaknesses in the budgetary system and its implementation – budget estimates, Skewed expenditure pattern, Poor planning and lack of long-term perspective etc.
Next, suggest measures to overcome the above weaknesses in order to ensure that budgetary objectives are achieved.
Conclusion:
Conclude by writing a way forward.
