Page-3 of GS-III: Government Budgeting

Differentiate between Zero Based Budgeting and Incremental Budgeting. Why they are not adopted now? Examine.

Model Answer: Zero-based budgeting is a method of budgeting in which all expenses for each new period are considered and justified and no reference is made or considered of previous years. Incremental budgeting is a way of budgeting where the ..

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Trace the evolution of Budget in India since East India Company rule.

Model Answer: A rough budget of East India Company was prepared in 1790.After the end of East India’s Company’s rule, India’s first budget was presented on February 18, 1860 by James Wilson, a Finance Member of the India Council. The ..

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"Budget serves as a public policy document expressed in money and is an embodiment of implied policy objective in monetary terms."With this reference assess the role played by budget in economy.

Model Answer: The budget document is the most important policy document, which contains both revenue and expenditure plans of government. The key functions of a government budget are discussed below: Public Policy Document The budget serves as a public policy ..

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"Budget transparency and accountability are two of the eight basic indicators of good governance as propounded by United Nations."With this reference, critically discuss the principles followed in budgetary process in India.

Model Answer: Budget transparency and accountability are two of the eight basic indicators of good governance as propounded by United Nations. Budget transparency implies that government gives out all data regarding budget. Accountability refers to that; government is responsible for ..

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Elaborate the various stages of preparation of budget in India before it is presented in the parliament.

Model Answer: The Finance Minister urges different ministries and departments to prepare their estimates and send the reports within a given period of time. The task is performed by Deputy Commissioners with the help of other local officers and staff. ..

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