A Parliamentary panel today said the Budget speeches “no doubt make the public happy”, but regrettably the announcements do not match actual allocations and utilisations in some cases, thus reflecting on credibility of the government. The Standing Committee on Finance, in its report tabled in Parliament, said the Finance Ministry should constantly monitor and follow-up on the implementation of well intended budgetary announcements of the Government, so that outcomes and visible results are shown without undue time-lag to the intended beneficiaries in specific and people in general.
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The Committee, headed by M Veerappa Moily, said “the announcements made in Budget Speech no doubt make the public happy and also hopeful for a better future”.
However, these announcements, in certain cases, do not result in matching allocations and purposeful utilisation.
The Committee are of the view that such instances of budgetary allocations as well as actual expenditure not living up to the budgetary announcements “cannot but reflect on the credibility” of the Government in implementing these steps on ground.
It also reflects lack of efficiency of the administrative machinery and inadequate followup, the panel’s report said.
As per the report, the Finance Ministry informed that in 2017-18 Budget, attempts will be made to modify the receipt budget so as to coherently reflect collection of each cess.
The Committee again pointed out that if the money collected from tax-payers is not spent for the designated purpose or is diverted, it would distort the economic objectives, as the additional tax would only bring down real incomes without any accompanying gain in socio-economic indicators as targeted.