Question : What is performance budgeting? Bring out its merits, limitations and difficulties?
(2007)
Answer : The quest to bring out efficiency and effectiveness in the management approach to budgeting led to the search of different forms of budgeting process. The emancipation of performance budgeting was one of such approach. The establishment of First Hoover Commission in USA in 1949 was definitely to search out the best management approach for budgeting. This commission recommended for the performance budgeting. Accordingly, it was introduced by President Truman in 1950.
The Performance Budgeting (PB) emphasises ....
Question : “Successfully implementing budgeting approach requires favourable incentive structures”. Discuss.
(2006)
Answer : Budgeting approach contains many developmental projects, which are formulated by heavy discussions and deliberations. Failure of its implementation means a huge loss of expensive working hours and money or public funds. This is why that the government should make sure that there is an inherent incentive mechanism in the budgeting approach that can motivate the officials who have the responsibility of implementation.
The budgeting approach is considered as a instrument of social change and development. It ....
Question : “Audit continues to be considered as something alien, something extraveous and something of the nature of an impediment”. Explain.
(2006)
Answer : Audit is indispensable for sound and proper administration as it acts as a watchdog and keeps an eye on the spending of public money. Due to this reason the administrative agencies have always to be extra vigilant in order to save themselves from financial criticism.
Audit is of many types like Audit of expenditure, Audit of propriety, Legal audit. All these types checks the honesty, prudency, malpractices, negligence, wasteness in the spending of tax payer’s money. ....
Question : “Critically examine the classical science of administration with special reference to its criticism by Dwight Waldo and Robert Dahl.”
(2006)
Answer : The classical science of administration is at the centre-stage in evolution of the Public Administration. The excessive research done by the theorist like F. W. Taylor, Henry Fayol, Gullick, Urwik, Max Weber gave the very base to the field of public administration on which in later years public administration developed. But the classical science suffers from many flaws like their value neutral mechanistic approach etc.
The classical scientist mainly concentrated on increasing efficiency and completely ignored ....
Question : Why does the issue of budgeting as politics versus budgeting as analysis remain important in the budgeting process? Do you agree that some synthesis of the two position seems possible? Illustrate.
(2005)
Answer : The Budgetary responsibilities of the modern government are vast and grave, for budget, to quote the often-quoted Gladstone, “goes to the root of prosperity of individuals, the relation of classes and the strength of kingdom. In the budget making are projected the financial policy of the government, the aspirations and anxieties of its several organs.
The budgetary responsibilities strictly speaking, are not the exclusive concern of one particular ministry, howsoever powerful it may be. All the ....
Question : “The budget is an instrument of coordination”. Explain.
(2005)
Answer : The Budget is a comprehensive plan of action designed to achieve the policy objectives set by the government for the coming year.
It helps in coordinating various aspects of government objectives.
Budgeting is the heart of administrative management. It serves as a powerful tool of coordination, and, negatively, an effective device of eliminating duplication and wastage.
Coordination is served by devices such as, justification of estimates, supervision of the use of appropriated funds, timing of the rate of ....
Question : Auditing in Government is an exercise in Post-Mortem.” Examine.
(2002)
Answer : Audit means an examination of accounts with a view to the correctness of these accounts and of the transaction they embody.
Audit of governmental accounts in all countries is largely a legality and honesty audit, i.e., it largely confines itself to seeing that expenditure is in conformity with the laws and rules and is supported by adequate vouchers.
Audit is conducted after the events have occurred, it cannot prevent an overpayment or nonobservance of the financial rules ....
Question : Examine the government budget as an instrument of public policy and a tool of legislative control?
(2002)
Answer : Government Budget is a comprehensive plan of action designed to achieve the policy objectives set by the government for a coming year. A budget is a plan and budget document is a reflection of what the government expects to do in future. While any plan need not to be a budget, a budget has to be necessarily a plan. It shows detailed allocation of resources and proposed taxation or other measures for their realization.
Budget reflects ....
Question : Critically examine the monetary and fiscal policies of Government of India in the decade 1991 to 2001. Do you think world financial institutions had a vote to play in the opening Indian Economy to global forces? Give reasons to substantiate your argument.
(2001)
Answer : Time from 1991 to 2001 was very significant decade in the Indian Economic environment because this was time for Privatization, Globalisation, Liberalisation. During this time very crucial decisions were taken by then Government in power. During this time various monetary and fiscal policies were introduced to pave the way for privatization and liberalization. Various sectors were inclusive territory for Public Sector were open for Private Sector like, telecom, petroleum, insurance, banking etc., except defence and ....
Question : Burkehead says: ‘Budget in Government is a vehicle of fiscal policy and a tool of management’. Examine this statement.
(2001)
Answer : The term Budget is very comprehensive term. Now, in the words of Willoughby: “The Budget is something much more than a mere estimate of revenues and expenditures. It is, or should be, at once a report, an estimate and a proposal.”
Thus, the budget is a statement of the estimated receipts (revenue or income) and expenditure of the government in respect to a financial year. Now, from the above definition and meaning, we can easily say ....
Question : ‘Statutory External auditing is one of the protectors of democracy in the Parliamentary form of Government’. Comment.
(2001)
Answer : Statutory external auditing refers to a system of auditing through which accounts and transactions and various deals of government of central or state comes under Scrutiny. There is a constitutional agency that CAG which is responsible to audit the document, accounts and transactions of government of India and state. It is a kind of control technique which has constitutional sanctity.
Auditing is in real sense true protectors of democracy in the Parliamentary form of government, because ....
Question : Budget as an instrument of socio-economic transformation.
(2000)
Answer : Budget is very important tool of socio-economic transformation. Budget implies planning in advance, the various programmes and policies to be taken up in forthcoming year. Budget is instrument through which total finance required to take up development programmes and estimated revenues of government from various activities are planned properly and final shape is given by the finance ministry.
As we know that India is developing country with limited resources and various problems of poverty, public health, ....
Question : Give reasons for the failure of Government of India to introduced the performance programme budgetary technique in Union Ministeries. What type of budgetary system is being currently practiced in India and why?
(2000)
Answer : A performance budget presents public expenditure in terms of functions, programmes and activities, and thus, stands, out from line-item (traditional) budget which only emphasizes staff, furniture, equipments etc. The (Indian) Administrative Reform Commission defines performance budgeting as “ a technique for presenting government operations in terms of functions, programmes and activities on projects.”
On the recommendation of Administrative Reform Commission central government have introduced performance budgeting in 1968. In that year (i.e., 1968) performance budgets of ....
Question : “The weakest aspect of Indian Administrative System is utter disregard of accountability.” Examine the current mechanism for enforcing accountability. What steps are necessary to make it more effective?
(2000)
Answer : The concept of accountability implies the obligation of the administration to give a satisfactory account of their performance and the manner in which they have exercised powers conferred on them. Its main aim to check wrong and arbitrary administrative actions and increase efficiency and effectiveness administrative process.
Even though we have various methods and procedures to make administrator accountable for performance and activities taken up by them. There are various agencies through which there is a ....
Question : “Budget is a tool which serves many purposes.” Comment.
(1998)
Answer : Budget is a financial document which is annually placed before the legislature, by the executive. It gives a complete statement regarding the government revenue and expenditure of the past financial year and an estimate of the same for the next financial year. Budget is not merely an estimate of revenue and expenditure. It is the record of past performance, a method of current control, and a projection of current control and a projection of future ....
Question : “Budgeting and fiscal administration require the public administrator to resolve a variety of operational, managerial and strategic issues.” Explain.
(1996)
Answer : Budgeting and fiscal administration is broadly concerned with raising and spending financial resources and public debt operations to influence the economic activities of the community in desired ways. It is also concerned with the allocation of resources between the public and private sectors and their use in accordance with national objectives and priorities. It aims at using its three major instruments – taxes, public expenditure and public debt – as balancing factors in the development ....
Question : Program budgeting is often considered interchangeable with performance budgeting but there is a significant difference at least in theory?
(1995)
Answer : In administration we use often few terms interchangeably due to matching of the subject in some sense but in pure form these subject matter are differ to each other in their sense like, “Program budgeting” and “Performance budgeting” seems to be similar to each other in terms of their relative theory. Program budgeting denotes an Administration of certain program, function or any institutional set up and authorize some persons with certain work, to manage and ....
