'Unified budget' from next fiscal
Friday, 12 June 2009
FE Report
The government has taken a major policy shift in preparation of national budget as it plans to frame "unified budget", "district budget" and "five-year development plan" from fiscal 2010-11 to achieve the vision of 2021.
In the budget speech Thursday, the finance minister AMA Muhith said the government will frame the "unified budget" from the FY2011 doing way with the current budget format of "development" and "non-development" expenditures.
"We want to initiate a few reforms related to budget preparation and execution starting from the next fiscal year (2010-11). The dichotomy between non-development and development is essentially artificial," Mr Muhith told parliament while unveiling the national budget for FY2010.
Backing his new plan Muhith said: "For example, construction of schools is under the development budget, but salaries of teachers and other educational inputs are within the purview of non-development budget. The desired outcome will not be achieved through the civil works connected with the construction of schools alone."
On his next plan for district budget preparation, he said: "As we all know, the national budget is prepared centrally. This does not capture the hopes and aspirations of the people at the grass root level."
"At the same time, transparency and accountability cannot be ensured, as we cannot say how much resources have been utilised in a particular district."
He said as an initial step the government wants to prepare a district budget for one district in each division through partial modification and improvement in the classification structure and a few changes in the development project proforma.
If it is possible, then the central budget will also be able to illustrate a district wise budgetary break up, which will ensure transparency of public expenditure and accountability in the implementation of programmes, finance minister told parliament.
The government has taken a major policy shift in preparation of national budget as it plans to frame "unified budget", "district budget" and "five-year development plan" from fiscal 2010-11 to achieve the vision of 2021.
In the budget speech Thursday, the finance minister AMA Muhith said the government will frame the "unified budget" from the FY2011 doing way with the current budget format of "development" and "non-development" expenditures.
"We want to initiate a few reforms related to budget preparation and execution starting from the next fiscal year (2010-11). The dichotomy between non-development and development is essentially artificial," Mr Muhith told parliament while unveiling the national budget for FY2010.
Backing his new plan Muhith said: "For example, construction of schools is under the development budget, but salaries of teachers and other educational inputs are within the purview of non-development budget. The desired outcome will not be achieved through the civil works connected with the construction of schools alone."
On his next plan for district budget preparation, he said: "As we all know, the national budget is prepared centrally. This does not capture the hopes and aspirations of the people at the grass root level."
"At the same time, transparency and accountability cannot be ensured, as we cannot say how much resources have been utilised in a particular district."
He said as an initial step the government wants to prepare a district budget for one district in each division through partial modification and improvement in the classification structure and a few changes in the development project proforma.
If it is possible, then the central budget will also be able to illustrate a district wise budgetary break up, which will ensure transparency of public expenditure and accountability in the implementation of programmes, finance minister told parliament.