Union Budget 2017 to have crucial changes

The colonial-era tradition that was followed for the last 58 years for the union budget will soon be a history as the new budget, which will be presented on February 1, is likely to be presented in a new body by the Finance Minister Arun Jailtey. Apart from it being presented in a new body, some significant changes have also been included in the budgetary process, as per the reports. It is also likely that classification of “planned and non-planned expenditure” will be eliminated by Arun Jaitley in the upcoming Union Budget 2017.

According to the reports, the government will bring transparency in the budgetary process and it will now be easier to know how much public money is being used for development. The idea for the budget plan and non-plan expenditure of government spending came in the year 1950 but came into practice only in 1959-60 while Morarji Desai was the Finance Minister of India. He had then announced that the money will be spent effectively. However, over the time, with the start of economic reforms and liberalisation, the non-plan expenditure became irrelevant as the successive governments focused more on planned expenditure for the budget.

In July 2011, the Ex-Governor of the Reserve Bank of India (RBI) C Rangarajan recommended the the effective management of public expenditure and the elimination of the prevailing order of classification of non-plan expenditure.

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