18.28 ndian onom
regard to DBT with regard to LPG and kerosene discipline and suggest improvements
consumers—Chandigarh and 8 districts of theirin;
Haryana have become kerosene free. Besides, 84 (iii) Suggest measures to improve allocative
Government schemes have also been boarded on effeciencies in the existing expenditure
the DBT platform. The idea of DBT will also be classification system, including focus on
key to India’s transition to a cashless economy— capital expenditure;
as pointed by the Economic Survey 2015-16 and (iv) Design a framework to imrpove
vindicated in the post-demonetisation period. operational efficiency of expenditures
The Economic Survey 2015–16 suggested through focus on utilization, targets and
the DBT solution for farm loans and interest outcomes;
subvention schemes availed by the farmers. It (v) Suggest an effective strategy for meeting
further advised for replacing the existing system reasonable proportion of expenditure on
of MSP/procurement based PDS with DBT services through user charges;
which will free the market of all controls on (vi) Suggest measures to achieve reduction
domestic movement and import. The present in financial costs through better Cash
system distorts the concept of a market and needs Management Ssystem;
to be discontinued to enhance productivity in (vii) Suggest greater use of IT tools for
agriculture, as per the Survey. expenditure management;
(viii) Suggest improved financial reporting
exPendIture management systems in terms of accounting,
commIssIon budgeting, etc., and
By early September 2014, the GoI constituted an (ix) Consider any other relevant issue
Expenditure Management Commission (EMC) concerning Public Expenditure
through a Resolution. The EMC will look into Management in Central Government
various aspects of expenditure reforms to be and make suitable recommendations.
undertaken by the government and other issues
concerning Public Expenditure Management. need of PuBlIc Investment
The Commission has one full time, one part We see the new government at the Centre
time and one ex-officio members other than initiating several reforms. Together with the
Chairman of (Cabinet rank). Dr. Bimal Jalan is experts, the Government of India also believe that
its first Chairman. The terms of reference of the this has revived the investor sentiment. But a real
Commission are as given below: investment flow is yet to pick-up, especially from
(i) Review the major areas of Central the private sector. The cause for such a situation
Government expenditure, and to suggest has been identified as the “balance sheet syndrome
ways of creating fiscal space required to with Indian characteristics”. The Economic Survey
meet developmental expenditure needs, 2014–15 has analysed this situation in greater
without compromising the commitment details.
to fiscal discipline. In such a scenario, together with other
(ii) Review the institutional arrangement, measures, the most important action which has
including budgeting process and FRBM been suggested is “boosting the public investment”.
rules, for enforcing aggregate fiscal Merit of such an action has been emphasised by