Jharkhand tables the “First Outcome-Based Budget”

The government of Jharkhand have presented the “Outcome-Based Budget” on March 3, 2021 for the first time. In this budget, all the departments were given specific targets and responsibilities that are required to be completed in a specified time. The results with respect to those targets will be evaluated at the end of financial year 2022.


Finance Minister Rameshwar Oroan tabled the Outcome-based budget of worth Rs 91, 277 crores for the financial year 2021-22. The budget was increased from the budget of Rs 86, 370 crores in the year 2019-2020. The government also stated that, in the year 2021-22, fiscal deficit will be equal to Rs 10, 210.87 crores. It accounts for 2.83 per cent of the state’s GDP.

Which departments are included under new budget?

Under the new initiative of fixing responsibility 11 departments like Animal Husbandry, Agriculture, Cooperative, Health, Women & Child Development and Social Security have been included under the outcome-based budget. These departments have already submitted the detailed document regarding the work they have planning to do for the next fiscal year.

Schemes announced during the budget

Under the scheme, a “Universal Pension” scheme was announced for all old age, orphaned and disabled. This will incur an additional budget of Rs 365 crores for state. Similarly, the Health and Family Welfare Department will be working with the objective of increasing number of MBBS seats in light of the operationalisation of medical college in 15 districts. Increasing the number of MBBS seats will act as the “output indicator” which accounts for annual availability of 1,500 MBBS doctors per year once the infrastructure is completed. The budget also announced to establish a “cremation ground for cows” in every division of the state.

Outcome Based Budget

This technique of presenting budget was recommended from the budget 2007- 08. Under this mechanism, each ministry handling a sector are required to present a preliminary outcome budget to the Ministry of Finance. This budget is presented with the objective of establishing correlation between the outlay, output and outcome of the budget.




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