Govt initiates Budget restructuring

Govt initiates Budget restructuring
  • New measure to consolidate demand for grants into 5 major heads: Drabu
  • Panel headed by Principal Secy Finance to work out modalities

Srinagar: In a move to reform the Public Expenditure System, state Minister of Finance Haseeb Drabu on Thursday outlined a major restructuring initiative in the Jammu and Kashmir budget formulation.
Drabu asked the Finance Department to reorganise and consolidate the ‘Demand for Grants’ under five major heads: Administrative Service, Social Service, Infrastructure Service, Economic Service and Financial Service.
A statement issued by the government’s information department said that the finance minister suggested that the Demand for Grants from various departments be clubbed together to make sure that all stakeholders know the expenditure policy of the state government. The move will make the budget document accessible to legislators.
“This will add transparency to the system as well as ensure a richer debate on public spending and priorities of the Government,” the finance minister said.
The move follows two major reforms carried out earlier by the Finance Department including abolition of the Plan-Non Plan expenditure system and the introduction of Revenue-Capital Budgeting, said the statement issued here.
To work out the details, Drabu set up a High-Level Committee to be headed by the Principal Secretary Finance, Navin Kumar Choudhary. J&K Legislature’s Estimates Committee, Law Secretary Abdul Majid Bhat, Accountant General (A&E) Shourjo Chatterjee and Director Budget Imtiyaz Ahmad will be the members of the committee.
“The Committee will examine legal and procedural inputs for Reorganization of Demands and submit its report within 10 days. Post GST, the State as well as the Centre’s budget has to undergo substantial changes. The reorganization will improve transparency of budget and enhance monitoring,” Drabu said in the statement.
The finance minister was informed that there are 29 Demands for grants right now. He proposed that, in accordance with rules and procedures, there be only five to six major heads, which will aggregate the demands for grants.

 

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