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  • Category: Miscellaneous

    Why the annual budgets are losing their value?

    The annual budget of a country and those of the states had so much importance and value in the past. People used to remain glued to the radio or TV to know about the things that would cost more or things that would cost less etc. But the present budgets are not creating any interest among the people. In the past, once the budget was passed, the government used to strictly follow the plan of the allocated funds to each and every department. The government couldn't go beyond or were allowed to transfer those funds for other purposes. But in the present budget plans, governments are not at all following budget plans and the allocated funds to one sector are used for other purposes. Annual budgets are becoming a farce and they are introduced for namesake only now. In previous governments of combined AP, we used to have a brilliant finance minister who used to follow the annual budgets of the government strictly. In your opinion, why are the annual budgets losing their value and importance?

    {Edited}
  • #753752
    Even today the funds allocation and money disbursements will be done as per the approved budget only. The government can't change as they like. A little this way or that way may happen but major deviations are not possible. But people might have no interest in knowing the changes as the difference that may for their personal valets be very negligible. But many people in various industries will be waiting for the budget as the taxes may change for the products they make or they buy. We used to sit before the TVs to know the changes in our office. But a common man may not have such an anxiety.
    drrao
    always confident

  • #753753
    Nice observations from the author and gone are those days when we used to have the transistor and the budget speech was relayed and we would be eagerly waiting for proposals. decrease in price, extending of schemes and income tax slab rates and so on. And before the budget was presented there used to be lots of exercise by the finance ministry in eliciting the views and proposals from industries, associations, common man, house wives and others. But now the budget are made by the secretaries and read out by the minister in the Parliament and no public opinion is regarded. And what is more worrisome is the budget allocations are not done as envisaged and amends are made either to upgrade or contract the proposals. Thus the budget has lost the sheen except the stock markets to make money.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #753767
    Budget is a financial plan. It allocates funds for so many activities. If some activity is withdrawn then that budget can be re-appropriated for other activity after taking the sanction of the competent authority. Earlier it was difficult to get that sanction because the finance department did not agree for those re-appropriations so easily and asked many questions which the user department could not answer satisfactorily. Today the things are much streamlined and finance department has to agree for these re-appropriations if the authority agrees for it. In fact the red tapism present in the system has decreased today and funds can be used effectively. So the actual budget utilisation would differ from the plan and some people consider that a bad thing from financial angle but again it is a matter of interpretation only as the authority is supposed to know more about it rather than the finance section which is there only to help the management in managing financial work.
    Knowledge is power.

  • #753774
    It is aright issue to be discussed regarding the annual budgets and how this is going to affect our lives in its excess consumption or otherwise. Earlier we used to watch our TVs to know which products will cost higher as a result of the budget declaration and what are the products for which our finance minister has declared some concessions to the consumers.During the corona phase, we have had severe blows in handling the financial issues. Even the government felt hardships in raising taxes from the different sectors and the fund utilisation in the different sectors had to be curtailed to maintain the budget allocations. One important aspect is that once the spendings of some revenue is planned, this is supposed to be maintained without any deviation to maintain the decency of the budget but that all depend upon how effective is our finance ministry to handle the issues.


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