Which of the following statement s is are true about lsquo Outcome Budgeting rsquo 1 Outcome based b...........

Economic Affairs Public Finance and Debt Management

Which of the following statement/s is/are true about ‘Outcome Budgeting’?

1. Outcome based budgeting is a practice of suggesting and listing of estimated results of various Government initiatives and interventions.

2. In Outcome budgeting, the outcomes are measured only in terms of money invested into an initiative and not in terms of tangible benefits arising out of it.

Select the correct answer using codes given below

1 only

2 only

All of the above

None of the above

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Explanation:

...First statement is correct. The Outcome Budget is likely to comprise scheme- or project-wise outlays for all central ministries, departments and organisations during 2005-06 listed against corresponding outcomes (measurable physical targets) to be achieved during the year. It measures the development outcomes of all government programmes.
Outcomes are the end products and results of various Government initiatives and interventions, including those involving partnership with the State Governments, Public Sector Undertakings, autonomous bodies and the community.
Second statement is incorrect. Outcome based budgeting is that in which outcomes of programmes are measured not just in terms of Rupees but also in terms of physical units like Kilowatt of energy produced or tonnes of steel produced. Also outcomes are expressed in terms of qualitative targets and achievements to make the technique more comprehensive.