Budgeting as the instrument of public policy: Ruminating over five budgets of Indian union from 2016-17
- Bihar Journal of Public Administration
- 20(1), Jan-Jun, 2023: p.198-208
Budgeting by governments has a history of almost hundred and fifty years and it gradually evolved as tool of public policy. Budget was first used as a tool of policy in the early 19th Century by American President Abraham Lincoln. However, the history of budgeting in India can be traced back to ancient period as reflected in Kautilya’s Arthshastra. In modern times, budget has been proved to be effective tool of policy as it regulates governments’ accountability, efficiency and economy. Further, the nature of budgeting has been changing with change in time and political regimes. With this view in mind, the present paper attempts to analyse the Union budgets of last five years in order to underline influence of budget on policy decisions. The paper finds that the tax revenue has gradually increased over the years on one hand and non-plan public expenditure has also risen sharply in last two budgets on the other. This trend indicates the shift in policy priorities. – Reproduced