Podcast
Questions and Answers
What principle is a balanced budget based on?
What principle is a balanced budget based on?
Why does a surplus budget denote the affluence of a country?
Why does a surplus budget denote the affluence of a country?
In what situation is it important to keep aggregate demand under control?
In what situation is it important to keep aggregate demand under control?
Why is a deficit budget considered best suited for developing economies?
Why is a deficit budget considered best suited for developing economies?
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What is the main challenge in achieving a balanced budget in practice?
What is the main challenge in achieving a balanced budget in practice?
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How can a government help control aggregate demand during inflation?
How can a government help control aggregate demand during inflation?
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What does a surplus budget aim to achieve during inflation?
What does a surplus budget aim to achieve during inflation?
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Why might a government run a surplus budget during inflation?
Why might a government run a surplus budget during inflation?
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What is the significance of keeping the aggregate demand under control?
What is the significance of keeping the aggregate demand under control?
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When might a deficit budget be a suitable approach for a country?
When might a deficit budget be a suitable approach for a country?
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Study Notes
Monitors and Budgets
- Monitors expenditure and public service delivery from a gender perspective, ensuring gender commitments are translated into budgetary commitments.
- Involves dissection of the Government budgets to establish its gender differential impacts.
Outcome and Performance Budgets
- Part of result-oriented budgeting, providing both quantitative and qualitative progress reports of government performance.
- Outcome budget is presented by different departments and divisions of a ministry or government, while performance budget is presented by the ministry of finance.
- Outcome budget is a micro-level process, while performance budget is a macro-level process.
- Objective is to bring transparency and accountability, making the government more responsible to the house and public.
Types of Budgets in India
Zero-Base Budgeting
- Concept introduced in the USA by Peter Phyrr in the 1960s.
- Jimmy Carter, Governor of Georgia, USA, first introduced ZBB to the public sector.
- Involves allocation of resources to agencies based on periodic re-evaluation of programmes.
- Based on the principle of “living within means,” ensuring government expenditure does not exceed revenue.
Balanced Budget
- A balanced budget does not ensure financial stability at times of economic depression or deflation.
- Theoretically, it's easy to balance estimated expenditure and anticipated revenues, but practical implementation is challenging.
Surplus Budget
- A government budget is a surplus budget if expected government revenues exceed estimated government expenditure.
- Denotes financial affluence of a country and can be implemented at times of inflation to reduce aggregate demand.
- Reduces aggregate demand by reducing government expenditure.
Deficit Budget
- A government budget is a deficit budget if estimated government expenditure exceeds expected government revenue.
- Best suited for developing economies, such as India, helping to generate additional demand and boost economic growth.
- The government incurs excessive expenditure to improve employment rates, resulting in increased demand for goods and services, which helps revive the economy.
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Description
Test your knowledge on gender budgeting and outcome budgets, focusing on monitoring public service delivery from a gender perspective and analyzing government budgets for gender impacts. Explore concepts related to result-oriented budgeting and performance reports.
