Q. Which of the following is/are change/s has taken place over the last few years in Union Budget?
1.From the Financial Year 2018, budget discontinued having Plan and Non-Plan classifications of Government expenditure.
2.The railway budget was merged with the Union Budget from Financial year 2018.
3.The date of the Budget was advanced to 1 February from the Budget Financial year 2018.
Choose the correct answer from below given codes:
Explanation: The Budget FY18 discontinued having Plan and Non-Plan classifications of Government expenditure. The reform gave a greater emphasis to the Revenue and Capital classification of Government expenditure.
- Over the years, a broad understanding had been that Plan expenditures were good and Non-Plan expenditures were bad, resulting in skewed allocations in the Budget. The reform enabled effective planning and allocation of resources in the Budget.
- The railway budget was merged with the Union Budget from FY18. The reform gave a holistic picture of the government’s financial position.
- The initiative envisaged facilitating multimodal transport planning between highways, railways and inland waterways, which has been strengthened in the subsequent years through Gatishakti.
- The date of the Budget was advanced to 1 February from the Budget FY18. The advancement of Budget presentation by a month has paved the way for early completion of the Budget cycle.
- It has also enabled the Ministries to ensure better planning and execution of schemes from the beginning of the financial year.
Source: Economic Survey 2022 – 23