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No. 10(2)lE.Coordl2}|5
Governmentof India
Ministry of Finance
Ministry of Expenditure
NorthBlock,New Delhi
Datedthe29thJanuarv.2015
OFFICE MEMORANDUM
Subject:
GUIDELINES FOR
BTTDGET
2015.16.
PREPARATION OF
OUTCOME
Introduction
outcome Budgets have become an integral part of the budgeting
processsince2005-06.OUTCOME BUDGET 2015-16will broadlyindicate
the physical dimensionsof the financial budgetsas also the actual physical
performance in 2013-14 and the performancetill December for the year
2014-15and the targetedperformanceduring2015-16.
Scopeof coveragein Outcome Budget 2015-16.
2. The Outcome Budget documentswill be preparedseparatelyby each
Ministry/Departmentin respectof all Demands/Appropriations
controlledby
them, except those exempted from this requirement and to the extent
disclosures are not barred on considerationsof security etc. A list of
exempted Demands/Appropriationsis enclosed at Annexure-I. However,
even the MinistrieslDepartmentsand other authorities 'exempted' from
preparation of Outcome Budget and placing it in public domain are
requestedto carry out this exercisefor internaluse and voluntarily decideto
placeit in public domainfully or partially.
3. As far as feasible, sub-targetsfor coverage of women and SC/ST
beneficiariesunder various developmentalschemesand the schemesfor the
benefit of the North-EasternRegion shouldbe separatelyindicated.
Ilroad Format of OutcomeIludget201S-16
4.
fhe OutcorneBudget2015-16witi be preparedon the basisof Budget
2015^16in the lbrm of a docr-rment,
separatefor eachMinistry/Department,
broadlyconsistingof the chapters
detailedbr:low:
Executivcsummary: Apart from summarizingrelevanl chapters,this
portion should prominentlv highlight the details of the monitoring
mechanismantl the public information system put in place by the
Ministry/Departmcnt to regularly monitor physical and financial
progressduring thc courseof the year and inform the generalpublic
about it.
ChapterI: Introduction
A brief introdr-ictory note on the lunctions of the Ministry/Department,
organrz,ationai
set up, list of maiorprogramnies/schemes
impiementedby the
Ministry/I)epartment,its mandate
, goals and policy framework. This
introductionshouldhighlightin particular,if the Ministry hasgoalsor major
programlnes
or schemcsin resirectof'women/gender
equalitl.
ChapterII: Statcmcntof Iludgetllstimate(SBE)
This will contain a tabular lbrrnat, which inay be visualized as "verlical
compressionand horizontalexpansion"01'theStatementof Budget E,stimate
(SBE), includecl in ti-reExpenditure Buciget Vol. II (with suitably adapted
'fhere
format for Railu,ays).
rxay be separate tables for separate
Dernands/Appropriationscontrolled by tJre Ministry/Department. The main
objective is to establish a one to one coffespondence between (financial)
B u d g e t 2 0 1 5 1 6 a n d Outcor neiludget 2015-i6.' fhe detailsivill co m pr i s eof
the financial outlays, pro.jectedphysical o.rtputs and projected/budgeted
outcomes (intermediatelpafi"raland final, as the case may be), Projected
physical output shor,rldbe disaggregatedb.y sex, wherer,'erpossible and
appropriatelyi.e u,hcre delivei'v is to indivi,luals.An indicative format for
these Demand/Appropriation-u,ise tables is enclosed as Annexure-II.
Explanatorynotesrnay be liberaily added.wherevernecessary.
Chapter III: Reform measuresand poticy initiative
This will detail reform measuresand policy initiative, if any, taken by the
Ministry/Department and how they relate to the intermediate outputs and
final outcomesin areassuchas public private partnerships,alternatedelivery
mechanisms, social and women's empowerment processes, grearet
decentralization, transparencyetc.
Chapter IV: Review of past performance
At the very least,this should indicate the perfonnanceduring 20I3-I4 and
2014-15in terms of targetsalreadyset.The analysisof physicalperformance
should be Scheme-wisewith the reasonsfor variations,explainingthe scope
and objectivesof individual programs/scheme,
giving their physical targets
and achievements.Indicators of performancerelating to individuals should
be sex-disaggregated.
Chapter V: Financial Review
Financial Review covering overall trends in expenditurevis-d-vis Budget
Estimates/RevisedEstimatesin recent years, including the previous year.
Data should be segregatedscheme-wise,object head-wise,and institutionwise in the caseautonomousinstitutions.Position of outstandingutilization
certificatesand unspentbalanceswith Statesand implementationagencies
shouldalso be brousht out.
Chapter VI: Review of performance of Statutory and Autonomous
Bodies
Review of performance of Statutory and Autonomous Bodies under the
administrative control of the Ministry/Departmentshould be on the same
principles as in reporting on the Ministry's own performance. These
principles include sex disaggregationof performanceindicatorsrelating to
individuals.
5. The following pointsrnay be notedin respectof contentsof ChapterII
of OutcomeBudget2015-16givingtargets1br2015-16(i)
The descriptionof iternsshould match the descriptionshown for the
differentitcmsin the Statementof Budgetllstimates(SBE)as included
in lixpenciituleBudget\iol. II of the Iiudget20l5-16.F{owever,
minor
iternsmav be clubbcdto avoid ciutterrngup and to fbcus attentionon
signiflcarrt
iterns.
(ii)
fhe terurs "contplementaryextra-buogetaryresources"refers to the
resourcescomurittedfol the purposeby the entities other than the
'fypically,
Central (lovernrnent.
it would includematchingsharefrom
the StateGovernmentsior Centrally SponsoredSchemesor resource
contributionby Public Sectorl.Jndertal.ings
or by privatepartiesin the
caseof PubiicPrivatePartnership
projects.
(iii) There should be a separatetable for each Central Public Sector
Enterprise(CPStr)under the adrninisirative
control oI the Ministry,
with itcmizedlistingof u-rajor
pro.1
ects in hand.The OuicorneBudget
shouldbe preparedon the basisof the {lentralPlan Outlaycomprising
of both the (iross Iludgetarysuppoftcomponentas well as the Internal
& Extra BudgetaryResources(II-.BI{s)componentof the CentralPlan
Outlay. Thus, the Outcome Budget in respectof CPSEs may be
preparcdevenif tl-rere
is no budgetar,v
support.
(iu) Wherever a Ministry/Departmenthas large autonornousBodies
substantiall-vdependent upon Govemment for financial support,
as
separatetablesmay also be consideredfor each such organrzation
per the asscssment
of,the Ministry/Deparlment.
(u) l'he tablesconcerningCPSF,sor AutonorrousBodies shouldlist out
irnportant plo.jectsin hand, give such details as sanctionedcost,
scheduleddate o[' compietion,total cumulativeexpendituretill the
beginningo1'theyear,totaiexpenditure
planningduring2015-16,likely
date of cornpletion,and the i'elated"outputs" and "outcomes".The
lattershouldbe sex-disaggregated
w'herethey relateto projectsoriented
to individuais.
("i) The 'final outcorrc' neecinot necessariiybe co-terminuswith the
annual<lutlaysand 'interrnediate
physicaloutputs'. 'Final outcomes'
may span a longer tirne fiarne than the annual final outlaysand the
conespondinginterrnediate
outputs.Whereverthe 'final outcomes'are
estimatedto take longer than one yeat,the estimatedtime frame should
be clearly indicated. In case, the gestation is four to five years or
longer, the 'partial outcomes'need to be tracked on an annualbasisto
ensurethat the 'f,tnaloutcomes'once indicatedas achievableafter five
years are not forgotten or mechanicallyrepeatedin the documentfrom
one year to the other and that the progressmade towards achievingthe
final goal is reflected. Information should be provided whether the
projectis in the 'initial' stage,'intermediate'stageor 'final' stage.
(vii) Wherever 'physical outputs' are in a sense the 'final outcomes',
assessmentof 'quality of output' through 'appropriate indicators of
quality' shouldbe broughtout.
(viii) Wherever 'final outcomes' are not the direct results of the annual
outlays and are the cumulativeeffect of past severalyears' outlays,this
shouldbe clearlyexplained.
(i") The 'f,rnal outcome' component of the Outcome Budget need not
necessarilyhave yearly targets,as final outcomeswill vary by Ministry
and Programme.'Final Outcome' whereverpossiblecan be measured
in a five year time frame in line with five year plans. The 'partial
outcome' may be mentionedin these casesin the OutcomeBudget of
that year.
(^)
Where the 'final outcomes' are not measurableand quantifiable,the
likely benefit that will accmemay be incorporated.
(^i) The explanatorynotesshouldattemptto bring out the role and financial
commitment of other agenciesthat is required to fructifz the intended
outcome of a particular scheme of the Ministry/Department, even
though such agenciesmay or may not be directly involved in the
implementationand may be providing complementaryservices.
(xii) Non-Plan expenditures are necessary to maintain the basic
infrastructurewithout which the Plan interventionsare bound to fail in
meeting the intended objectives. Role of Non-Plan expenditure is
therefore supplementaryand facilitative. Hence, outcomescannot be
categorizedas Plan outcomesand Non-Plan outcomes.The Outcome
Budget 2015-16 will cover Non-Plan expenditureas far as possible.
The column on Budget support would have two sub-columns"Plan"
and "Non-Plan" and the outcomeswill be related to the total budget
provision. Schemes/itemsin the Statement of Budget Estimates,
having only Non-l'lan expenditures,
which can be linked to certain
deliverableoutputs,shouldfind rnentionin the outcomeBudget.
(xiii)The OutcorneBudgetshouldalsocontainthe followine information(a)
Norrnal Savings: Savings resulting from economic use of
resources;
(b)
ljnder/Non-utilisation:Savingsdue to non-implementation/delay
in exccutionof proiects/schemes:
and
(c)
Surrcnders
: Savirrgs
dueto obsolete/defunct
pro.jects/scheme
or
due to cornpletionof a project / schemeand the funds are no
rrore required.
6. The outcomesreflectthe ultirnateairnsof Governmentpolicy through
budgetarysupport,tax exemption/concessions
and preferentialtreatmentirr
procurement o1' goods and services. It would be desirable if the
Ministries/I)epartments
incluciea chapterin the OutcomeBudget detailing
such extra-budgetarymeasuresand their irnpact. The revenueforgone in
promotionof certainpolicy objectivesis definedas 'tax expenditures'
and it
would be useftrlil the impactof this irnplicitexpenditure
is alsoassessed.
Certain presentational
features
7.
It is desilablethat thc above documcntsbrought out by different
Ministries/Departmentshave a corrlmon levcl of detailing. at least for a
rninimumset of disclosurepararneters;
separatelyin I-Iindiand English;be
reader-fi'iendly
and adoptceftaincolrrlrronprrntingformats.Accordingly,the
followingrnaybe kept in view:'l
In the case o1'Deparlmentshaving totai budget provision of less than
Rs. 100 crore ( as per the netted figure shown in the Expenditure Budget
Vol. II), all amountsmay be shown in "lakh" with two decimal places.For
others, the arnount may be shown in "crore" with tr,vodecimal places. The
amountsmay be shown with comma separatot:s.
*
Each page tnav be given a running heaclcrgiving tl-rechapter number,
title and running page number 1br the whoic <Jocumentstarting from the first
page of Chapter I. l'he docutnentsmay be printed on sarre size of paper used
for Detailed l)emands for (irants.
*
Any other additiorValteration,inclusion of graphics/chartsetc. to
improve readabilityof the document.
8. However, the above guidelines are not intended to prescribe a rigid
format. Theseare indicative of minimum disclosurerequirementsand do not
preclude any value addition that the Ministries/Departmentsdecideto carry
out on their own.
Planning for future refinements
9. The Ministries/Departmentsare advisedto put in place, if not already
there, systems of data collection, with the help of specializedagencies,
wherever necessary,for the purposeof (i) developingmeasurable'indices
of performance' to measure and assessquality of implementation, (ii)
developing norns of standard unit cost of delivery of a service, (iii)
quantification/factoringin of environmentaloutcomes,(iro)quantificationsof
community and empowerrnentoutcomesthrough social capital formation,
(v) quantification of impact of funds earmarked for publicity/awareness
generation; and ('ti) disaggregation,by sex and other relevant factors
indicative of performanceand impact. This will not only involve collection
of data on past trends but also on present development in markets and
technology.The MinistrieslDepartmentsare encouragedto make use of the
servicesof the Cost Accounts Branch of this Departmentin addressingthe
costingissues.
IndependentEvaluation
10. The Ministries/Departmentsmay engage independentevaluatorsand
assessmentagencies for scrutiny/evaluationof the achievementsagainst
physical outputs and final outcomesof major flagship schemes.Due care
may be taken to avoid duplicationof efforts in evaluationstudiesconducted
by the PlanningCommission/ NITI Aayog or the Departmentof Programme
Implementation.
Time Scheduleand responsibility.
11. The OutcomeBudget 2015-16documentsshould be laid before both
the Houses of Parliament, after final approval of the Minister-in-charge,to
ensurethat the processis completeafter presentationof Budget and before
end of the Budget Sessionor such date as may be necessary.In exceptional
cases,where laying of documentsis not feasible,thesemay be circulatedto
Hon'ble Mernbersof Parliarnentthroushthe Secretariatof the l{ouse.These
shouldbe availableto thc Depar-tmental
StandingClomrnittees
of Parliament
'fhe
for exatnination.
Ministrics/l)eparlrrrents
should also place these
documentsin tl"republic iomain by pr-,rtingit on their website after
presentation
in Parliarnent.
12. Responsibilityfor preparationof this documentwill rest essentially
-I'he
with the MinistriesiDeparlrnents.
Irinancial Aciviser of the
Ministry/Departnentwill be the nodal ofilcer for coordinatingthe whole
exerciseand cirganizing'need-based
cons;ultations'
with variousofficers
within the AdrninistrativeMinistry/Departrnentor with tire Ministry of
Finance,the PlanningCornrrission/ NII'I Aayog and outsicleexperts,with
due regard to tl-reconfidcntialityof the budget process.Ileads of various
Divisionshandlingdifferer-rt
schemes
may be instructedto providenecessary
draft write-upsand other rnateriaito the |inancial Adviser sulficientlyin
advance.
1 3 . T h e O u t c o r n cl l u d g e ts h o u l di n c l u d cF l a g s h i pP r o g r a m m e si f, a n y ,
also. The dralt Outcomc lludget 2015-16 in respect of "Flagship
Programmes"may be got vettedfrom the Departmentof Expenditure
(PIanFinance-II)as well as from the PlanmingCommission,Tr{ITl
Aayog.
F'ollow-upactionafter presentation
of OurcomeBudget
14. The real valueof OutcornelJudgetlies in its utility as arpolicy tool to
establisheffectivciinkagewitir aliocationand disbursernenr
of public funds
on the basiso1'measurabie
nertbr[lance.
1 5 . A s me n ti o rtcdi n par agr aph4 above,thc Ministr iesiDepanm ents
s houl d
indicate theil rlonitoring mcchanisrnanci thc public inlbrma[ion system in
the Outcornc lJudgct. 1'his u ili rcsult in Jrcriodic progress reports being
made available [o the Ministry/l)epartmentby the implemeritingagencies.
The next logical stcp would le to link reieaseof funds with progress in
achieving tnonitor-ablephysicai progressagainstcommitrnenrsmade in the
OutcorneBudget.
16. As the Ministries are aware, Itule 212 ttf'the General Financial Rules,
2005 introduced significant changes in the system of "Utiliz.ation
Cer-tificates".
Bcsidesfinancial certificationof having fully spentthe amount
for approved purpose, the Utiiization Cer-ti1'rcate
should aiso disclose
whether the specified, quantilred and qualir.ativetargets thar should have
been reachedagainstthe amorint utilizeci,were in fact reachcci,and if not,
IJ
the reasonstherefor.Utllization Certificatesshoul
performanceassessmentinsteadof input based
17. Accordingly,the Ministries/Departments
and practices applicable to their schemes to
controlled release of funds. In combination
managementmeasureslike e-banking, it should
nn outputbased
assessment.
se the guidelines
a staggered and
other expenditure
funds are madeavailablein time for actualreq
[& to ensurethat
d that the funds
are neither delayednor diverted or parked outside
account.
Joint Secretary
CreorgeMathew)
of India
All Secretariesto the Governmentof India
All FinancialAdvisersto the Ministries/Departmen
All Headsof accountingwings in the Ministrie
Copyto:l.
Secretary,
PlanningCommission
/ MTI
2.
The Technical Director, NIC, Department
requestto upload this Office Memorandum in
Ministrv of Finance.
9
with the
icid website of the
ANNEXURE-I
List of Demand/Appropriationin respectgIlryhrchOUlgAmeBudget is not man
The OutcorneBudget2015-16is intendedto covcr the entireCentralPlan Outlay
(GrossSuppor-tand Intelnal and Extla IludgetaryResources)and connectedNon-Plan
provisionsthat are alrrenablcto Outcomel3uclgeting.
Iri general,a Ministry/Department
may exclude"Assistanceto StatePlan" colnponentof its Plan f]udget ficlm the scopeof
'fhe
OutcomeBudget.
foilor.r,ingDemandr'Appropriations
are specificallyexemptedfrom
the purviewof outcornebuclacting:
Ministrvof Def'encc
DefencePensions
DefenceArm
DefenceNa
DefenceAir Force
DefenceOrdnanceIractones
DefenceSer-vices
Researchand Devcioprncnt
ital outlavon Del.ence
Services
InterestPayrncnts
.l'erritolr,(iovernmenls
Transfers
to Statesand lJnion
Loansto GovernmentServantsetc
mentof l)ebt
Pensions
IndianAudit andAccountsl)eoanment
Cabinet
ElectionCommission
SuoremeCourt of India
of Parliarleltary Affairs
o f P e rso n n e lP
, u b l ic Gr ievancesand Pensicns
Staff.Householdand allowancesof'the President
Lok Sabha
RaivaSabha
UnionPublicServiceC'ornrnission
Secretariatof the Vicc President
AndamanandNicobarlslands
Chandisarh
Dadra&
r I-Iaveli
Daman& Diu
[,akshadwee
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