What is Outcome based budget?

  • Outcome based budget technique has been recommended from the budget 2007- 08. Under this every ministry handling a sector presents a preliminary outcome budget to the Ministry of Finance.
  • It seeks to bring correlation between outlay, output and outcome.
    • Outlay- is the amount that is provided for a given scheme or project in the Budget.
    • Output- Refers to the direct and measurable product of program activities, often expressed in Physical terms or unit.
    • Outcome- It is the collective result or qualitative improvements brought about in the delivery of these services, often expressed in terms of improvements over earlier indicators and benchmarks.
    • Outcome’s Go beyond mere ‘outputs’, they cover the quality and effectiveness of the goods or services.
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