Guidelines for preparation of Outcome Budget 2015-16

/, ., No. 10 (2)lE. Coordl2}|5 Governmento f India Ministry of Finance Ministry of Expenditure NorthB lock,N ew Delhi Datedt he2 9thJ anuarv2. 015 OFFICE MEMORANDUM Subject: GUIDELINES FOR PREPARATION OF OUTCOME BTTDGET20 15.16. Introduction outcome Budgets have become an integral part of the budgeting processs ince2 005-06.O UTCOME BUDGET 2015-16w ill broadlyi ndicate the physical dimensionso f the financial budgetsa s also the actual physical performance in 2013-14 and the performancet ill December for the year 2014-15a ndt he targetedp erformanced uring2015-16. Scopeo f coveragei n Outcome Budget 2015-16. 2. The Outcome Budget documentsw ill be prepareds eparatelyb y each Ministry/Departmenti n respecto f all Demands/Appropriationcso ntrolledb y them, except those exempted from this requirement and to the extent disclosures are not barred on considerationso f security etc. A list of exempted Demands/Appropriationsis enclosed at Annexure-I. However, 'exempted' even the MinistrieslDepartmentsa nd other authorities from preparation of Outcome Budget and placing it in public domain are requestedt o carry out this exercisef or internalu se and voluntarily decidet o placei t in public domainf ully or partially. 3. As far as feasible, sub-targetsf or coverage of women and SC/ST beneficiariesu nder various developmentasl chemesa nd the schemesf or the benefit of the North-EasternR egion shouldb e separatelyin dicated.Ilroad Format of OutcomeI ludget2 01S-16 4. fhe OutcorneB udget2 015-16w iti be preparedo n the basiso f Budget 2015^16i n the lbrm of a docr-rmenst,e paratefo r eachM inistry/Department, broadlyc onsistingo f thec hapterds etailedb r:low: Executivcs ummary: Apart from summarizingr elevanlc hapters,t his portion should prominentlv highlight the details of the monitoring mechanisma ntl the public information system put in place by the Ministry/Departmcnt to regularly monitor physical and financial progressd uring thc courseo f the year and inform the generalp ublic abouti t. ChapterI : Introduction A brief introdr-ictory note on the lunctions of the Ministry/Department, organrz,ationsaei tu p, list of maiorp rogramnies/schemiemsp iementedb y the Ministry/I)epartment,i ts mandat,e goals and policy framework. This introductions houldh ighlighti n particulari,f the Ministryh asg oalso r major programlneosr schemcsin resirecot f'women/gendeerq ualitl. ChapterI I: Statcmcnto f Iludgetl lstimate( SBE) This will contain a tabular lbrrnat, which inay be visualized as "verlical compressiona nd horizontale xpansion"0 1'theS tatemento f Budget E,stimate (SBE), includecl in ti-reE xpenditure Buciget Vol. II (with suitably adapted 'fhere format for Railu,ays). rxay be separate tables for separate Dernands/Appropriationsc ontrolled by tJreM inistry/Department. The main objective is to establish a one to one coffespondenceb etween (financial) Budget2 015 16 and Outcorneil udget 2015-i 6.'fhe detailsi vill compriseo f the financial outlays, pro.jectedp hysical o.rtputs and projected/budgeted outcomes (intermediatelpafi"raal nd final, as the case may be), Projected physical output shor,rldb e disaggregatedb .y sex, wherer,'erp ossible and appropriatelyi .e u,hcre delivei'vi s to indivi,luals.A n indicative format for these Demand/Appropriation- u,ise tables is enclosed as Annexure-II. Explanatoryn otesr nay be liberaily added.w herevern ecessary.Chapter III: Reform measuresa nd poticy initiative This will detail reform measuresa nd policy initiative, if any, taken by the Ministry/Department and how they relate to the intermediate outputs and final outcomesi n areass ucha s public private partnershipsa, lternated elivery mechanisms, social and women's empowerment processes, grearet decentrailz ation, transparencye tc. Chapter IV: Review of past performance At the very least,t his should indicate the perfonnanced uring 20I3-I4 and 2014-15i n terms of targetsa lreadys et.T he analysiso f physicalp erformance should be Scheme-wisew ith the reasonsf or variations,e xplainingt he scope and objectiveso f individual programs/schemeg,i ving their physical targets and achievementsI.n dicators of performancer elating to individuals should be sex-disaggregated. Chapter V: Financial Review Financial Review covering overall trends in expenditurev is-d-vis Budget Estimates/RevisedE stimatesi n recent years, including the previous year. Data should be segregateds cheme-wiseo, bject head-wise,a nd institution- wise in the casea utonomousi nstitutions.P osition of outstandingu tilization certificatesa nd unspentb alancesw ith Statesa nd implementationa gencies shoulda lso be brousht out. Chapter VI: Review of performance of Statutory and Autonomous Bodies Review of performance of Statutory and Autonomous Bodies under the administrativec ontrol of the Ministry/Departments hould be on the same principles as in reporting on the Ministry's own performance. These principles include sex disaggregationo f performancei ndicatorsr elating to individuals.5. The following pointsr nayb e notedi n respecto f contentso f ChapterI I of OutcomeB udget2 015-16g ivingt argets1 br2 015-16- (i) The descriptiono f iternss houldm atch the descriptions hown for the differenti tcmsi n the Statem ento f Budgetl lstimates( SBE)a si ncluded in lixpenciituleB udget\ iol. II of the Iiudget20l5-16.F {oweverm, inor iternsm av be clubbcdt o avoid ciutterrngu p and to fbcus attentiono n signiflcarritte rns. (ii) fhe terurs "contplementarye xtra-buogetaryre sources"r efers to the resourcesc omurittedf ol the purposeb y the entities other than the 'fypically, Central( lovernrnent. it would includem atchings haref rom the StateG overnmentsio r Centrally SponsoredS chemeso r resource contributionb y Public Sectorl .Jndertal.ingosr by privatep artiesi n the caseo f PubiicP rivateP artnershippr ojects. (iii) There should be a separatet able for each Central Public Sector Enterprise( CPStr)u nder the adrninisirativeco ntrol oI the Ministry, with itcmizedl istingo f u-rajopr ro.e1c tsi n hand.T he OuicorneB udget shouldb e preparedo n the basiso f the {lentralP lanO utlayc omprising of both the (iross Iludgetarys uppoftc omponenta s well ast he Internal & Extra BudgetaryR esources(I I-.BI{s)c omponento f the CentralP lan Outlay. Thus, the OutcomeB udget in respecto f CPSEsm ay be preparcde veni f tl-rereis no budgetar,svu pport. (iu) Wherever a Ministry/Departmenth as large autonornousB odies substantiall-vd ependent upon Govemment for financial support, separateta blesm ay also be consideredfo r each such organrzationa s per the asscssmenotf ,t he Ministry/Deparlment. (u) l'he tablesc oncerningC PSF,so r AutonorrousB odiess houldl ist out irnportant plo.jectsi n hand, give such details as sanctionedc ost, scheduledd ate o[' compietion,t otal cumulativee xpenditureti ll the beginningo 1'they ear,t otaie xpenditurpel anningd uring2 015-16l,i kely date of cornpletiona, nd the i'elated" outputs" and "outcomes".T he latters houldb e sex-disaggregatewd'h eret hey relatet o projectso riented to individuais. 'final ("i) The outcorrc' neecin ot necessariiyb e co-terminusw ith the 'interrnediate 'Final annual< lutlaysa nd physicalo utputs'. outcomes' may span a longer tirne fiarne than the annual final outlaysa nd the 'final conespondingin terrnediateo utputs.W herevert he outcomesa' reestimatedt o take longer than one yeat,t he estimatedt ime frame should be clearly indicated. In case, the gestation is four to five years or 'partial longer, the outcomes'n eed to be tracked on an annualb asist o 'f,tnal ensuret hat the outcomes'o nce indicateda s achievablea fter five years are not forgotten or mechanicallyr epeatedi n the documentf rom one year to the other and that the progressm ade towards achievingt he final goal is reflected. Information should be provided whether the 'initial' 'intermediate' 'final' projecti s in the stage, stageo r stage. 'physical 'final (vii) Wherever outputs' are in a sense the outcomes', 'quality 'appropriate assessmenot f of output' through indicators of quality' shouldb e broughto ut. 'final (viii) Wherever outcomes' are not the direct results of the annual outlays and are the cumulativee ffect of past severaly ears' outlays,t his shouldb e clearlye xplained. 'f,rnal (i") The outcome' component of the Outcome Budget need not necessarilyh ave yearly targets,a s final outcomesw ill vary by Ministry 'Final and Programme. Outcome'w hereverp ossiblec an be measured 'partial in a five year time frame in line with five year plans. The outcome' may be mentionedi n these casesi n the OutcomeB udget of that year. 'final (^) Where the outcomes' are not measurablea nd quantifiable,t he likely benefit that will accmem ay be incorporated. (^i) The explanatoryn otess houlda ttemptt o bring out the role and financial commitment of other agenciest hat is required to fructifz the intended outcome of a particular scheme of the Ministry/Department, even though such agenciesm ay or may not be directly involved in the implementationa nd may be providing complementarys ervices. (xii) Non-Plan expenditures are necessary to maintain the basic infrastructurew ithout which the Plan interventionsa re bound to fail in meeting the intended objectives. Role of Non-Plan expenditure is therefore supplementarya nd facilitative. Hence, outcomesc annot be categorizeda s Plan outcomesa nd Non-Plan outcomes.T he Outcome Budget 2015-16 will cover Non-Plan expenditurea s far as possible. The column on Budget support would have two sub-columns" Plan" and "Non-Plan" and the outcomesw ill be related to the total budget provision. Schemes/itemsi n the Statement of Budget Estimates,having only Non-l'lan expendituresw, hich can be linked to certain deliverableo utputss, houldf ind rnentionin the outcomeB udget. (xiii)The OutcorneB udgets houlda lsoc ontaint he followine information- (a) Norrnal Savings: Savings resulting from economic use of resources; (b) ljnder/Non-utilisationS: avingsd ue to non-implementation/delay in exccutiono f proiects/schemeasn:d (c) Surrcnder:s Savirrgds uet o obsolete/defunpcrto .jects/scheomre due to cornpletiono f a project / schemea nd the funds are no rrorer equired. 6. The outcomesre flectt he ultirnatea irnso f Governmenpt olicyt hrough budgetarys upport,t ax exemption/concessioanns d preferentiatl reatmenti rr procuremento 1' goods and services. It would be desirable if the Ministries/I)epartmentisn cluciea chapteri n the OutcomeB udget detailing such extra-budgetarym easuresa nd their irnpact.T he revenuef orgone in 'tax promotiono f certainp olicy objectivesis defineda s expendituresa'n di t wouldb e useftrli l the impacto f thisi rnplicite xpenditureis alsoa ssessed. Certainp resentationafel atures 7. It is desilablet hat thc above documcntsb rought out by different Ministries/Departmentsh ave a corrlmon levcl of detailing. at least for a rninimums et of disclosurep ararneterss;e paratelyin I-Iindia nd English;b e reader-fi'iendlay nd adoptc eftainc olrrlrronp rrntingf ormats.A ccordingly,t he followingr nayb e kepti n view:- 'l In the case o1'Deparlmentsh aving totai budget provision of less than Rs. 100 crore ( as per the netted figure shown in the Expenditure Budget Vol. II), all amountsm ay be shown in "lakh" with two decimal places.F or others, the arnount may be shown in "crore" with tr,vod ecimal places. The amountsm ay be shown with comma separatot:s. * Each page tnav be given a running heaclcrg iving tl-rec haptern umber, title and running page number 1brt he whoic <Jocumenst tarting from the first page of Chapter I. l'he docutnentsm ay be printed on sarre size of paper used for Detailed l)emands for (irants.* Any other additiorValteration,i nclusion of graphics/chartse tc. to improve readabilityo f the document. 8. However, the above guidelines are not intended to prescribe a rigid format. Thesea re indicative of minimum disclosurer equirementsa nd do not preclude any value addition that the Ministries/Departmentsd ecidet o carry out on their own. Planning for future refinements 9. The Ministries/Departmentsa re advisedt o put in place, if not already there, systems of data collection, with the help of specializeda gencies, 'indices wherever necessary,f or the purposeo f (i) developingm easurable of performance' to measure and assessq uality of implementation, (ii) developing norns of standard unit cost of delivery of a service, (iii) quantification/factoringin of environmentaol utcomes,( iro)q uantificationso f community and empowerrnento utcomest hrough social capital formation, (v) quantification of impact of funds earmarked for publicity/awareness generation; and ('ti ) disaggregation,b y sex and other relevant factors indicative of performancea nd impact. This will not only involve collection of data on past trends but also on present development in markets and technology.T he MinistrieslDepartmentsa re encouragedto make use of the serviceso f the Cost Accounts Branch of this Departmenti n addressingth e costingi ssues. IndependentE valuation 10. The Ministries/Departmentsm ay engage independente valuatorsa nd assessmenta gencies for scrutiny/evaluationo f the achievementsa gainst physical outputs and final outcomeso f major flagship schemes.D ue care may be taken to avoid duplicationo f efforts in evaluations tudiesc onducted by the PlanningC ommission/ NITI Aayog or the Departmento f Programme Implementation. Time Schedulea nd responsibility. 11. The OutcomeB udget 2015-16d ocumentss hould be laid beforeb oth the Houses of Parliament, after final approval of the Minister-in-charge,t o ensuret hat the processi s completea fter presentationo f Budget and before end of the Budget Sessiono r such date as may be necessaryI.n exceptional cases,w here laying of documentsi s not feasible,t hesem ay be circulatedt oHon'ble Mernberso f Parliarnentth rousht he Secretariaot f the l{ouse.T hese shouldb e availablet o thc Depar-tmentaSlt andingC lomrnitteeosf Parliament 'fhe for exatnination. Ministrics/l)eparlrrrenstsh ould also place these documentsi n tl"rep ublic iomain by pr-,rtingit on their website after presentatioinn Parila rnent. 12. Responsibilityfo r preparationo f this documentw ill rest essentially -I'he with the MinistriesiDeparlrnents. Irinancial Aciviser of the Ministry/Departnenwt ill be the nodal ofilcer for coordinatingth e whole 'need-based exercisea nd cirganizing cons;ultationsw' ith variouso fficers within the AdrninistrativeM inistry/Departrnenot r with tire Ministry of Finance,t he PlanningC ornrrission/ NII'I Aayog and outsiclee xperts,w ith due regard to tl-rec onfidcntialityo f the budget process.I leads of various Divisionsh andlingd ifferer-srtc hemems ay be instructedto providen ecessary draft write-upsa nd other rnateriatio the |inancial Adviser sulficientlyi n advance. 13. The Outcorncll udgets houldi ncludcF lagshipP rogrammesif, any, also. The dralt Outcomc lludget 2015-16 in respect of "Flagship Programmes"m ay be got vettedf rom the Departmento f Expenditure (PIanF inance-II)a sw ell asf rom the PlanmingC ommission,Tr{IATal yog. F'ollow-upa ctiona fter presentatioonf OurcomeB udget 14. The real valueo f OutcornelJ udgetl ies in its utility as arp olicyt ool to establishe ffectivci inkagew itir aliocationa nd disbursernenorf public funds on theb asiso 1'measurabniee rtbr[lance. 15. As mentiortcdin paragraph4 above,t hc MinistriesiDepanmentssh ould indicate theil rlonitoring mcchanisrna nci thc public inlbrma[ion system in the Outcornc lJudgct. 1'his u ili rcsult in Jrcriodicp rogress reports being made available [o the Ministry/l)epartmentb y the implemeritinga gencies. The next logical stcp would le to link reieaseo f funds with progressi n achieving tnonitor-ablep hysicai progressa gainstc ommitrnenrsm ade in the OutcorneB udget. 16. As the Ministries are aware, Itule 212 ttf't he General Financial Rules, 2005 introduced significant changes in the system of "Utiliz.ation Cer-tificates"B. csidesf inancialc ertificationo f having fully spentt he amount for approved purpose, the Utiiization Cer-ti1'rcatseh ould aiso disclose whether the specified, quantilred and qualir.ativet argets thar should have been reacheda gainstt he amorintu tilizeci,w ere in fact reachccia, nd if not, IJthe reasonsth erefor.U tllization Certificatess houl nn outputb ased performancea ssessmenitn steado f input based assessment. 17. Accordingly,t he Ministries/Departments se the guidelines and practices applicable to their schemes to a staggered and controlled release of funds. In combination other expenditure managementm easuresl ike e-banking, it should [& to ensuret hat funds are made availablei n time for actualr eq d that the funds are neither delayedn or diverted or parked outside account. CreorgeM athew) Joint Secretary of India All Secretariesto the Governmento f India All FinancialA dviserst o the Ministries/Departmen All Headso f accountingw ings in the Ministrie Copyt o:- l. SecretaryP, lanningC ommission/ M TI 2. The Technical Director, NIC, Department with the requestt o upload this Office Memorandum in icid website of the Ministrv of Finance. 9ANNEXURE-I List of Demand/Appropriationin respectg IlryhrchO UlgAmeB udget is not man The OutcorneB udget2 015-16i s intendedto covcr the entireC entralP lanO utlay (GrossS uppor-at nd Intelnal and Extla IludgetaryR esourcesa) nd connectedN on-Plan provisionst hat are alrrenablcto Outcomel 3uclgetingI.r i general,a Ministry/Department may exclude" Assistancet o StateP lan" colnponenot f its Plan f]udget ficlm the scopeo f 'fhe OutcomeB udget. foilor.r,ingD emandr'Appropriatioanrse specificallye xemptedfr om thep urviewo f outcorneb uclacting: Ministrvo f Def'encc DefenceP ensions DefenceA rm DefenceN a DefenceA ir Force DefenceO rdnanceIr actones DefenceS er-viceRs esearcha nd Devcioprncnt ital outlavo n Del.enceS ervices InteresPt ayrncnts .l'erritolr,(iovernmenls Transfertso Statesa ndl Jnion Loanst o GovernmentS ervantse tc mento f l)ebt Pensions IndianA udit andA ccountsl) eoanment Cabinet ElectionC ommission SuoremeC ourt of India of Parliarleltary Affairs of PersonnelP, ublicG rievancesa ndP ensicns Staff.H ouseholda nd allowanceso f'the President Lok Sabha RaivaS abha UnionP ublicS erviceC 'ornrnission Secretariaot f the Vicc President Andamana ndN icobarl slands Chandisarh Dadra& r I-Iaveli Daman& Diu [,akshadwee 10zv) o - z o P t Q a I NJ o H (D U) tr,d o o o o UJ H d 6 5 5 d d N.) L.r| 5 I o\ 5 n' (< (.,| .-1 a \J -- x o o\ Y A 3 5 ' 94 a- -t:v ( D x i , a 5 ( , ! iaCD (,aq H H H Q d x X P u' oo 7+ a\ r!n. F