d) Capacity building for requisite efficiency at all levels, in terms of equipment, technology,
knowledge and skills;
e) Ensuring adequate flow of funds at the appropriate time to the appropriate level, avoiding both
delay and ‘parking’ of funds;
f) Setting up effective monitoring and evaluation systems, to indicate the directions for further
calibration and honing the processes, to deliver the intended outcomes;
g) Involving the community/target groups/recipients of the service, with easy access and feedback
Broad Format of Outcome Budget 2006-07
6. The Outcome Budget 2006-07 will be prepared on the basis of Budget 2006-07 in the form of a
document, separate for each Ministry/Department, broadly consisting of the following three chapters:
Chapter I: This will detail the mandate, goals and objectives as well as policy framework and
vision statement of the Ministry/Department.
Chapter II: This will contain a tabular format, which may be visualized as “vertical compression
and horizontal expansion” of the Statement of Budget Estimate (SBE) included in the Expenditure Budget
Vol. II (with suitably adapted format for Railways), with separate tables for separate Demands
/Appropriations controlled by the Ministry/Department so as to establish a one-to-one correspondence
between (Financial) Budget 2006-07 and Outcome Budget 2006-07. The details will comprise of the
financial outlays, projected physical outputs and projected/budgeted outcomes (intermediate/partial and
final, as the case may be). An indicative format for these Demand / Appropriation –wise tables is enclosed at
Annexure III. Explanatory notes may be liberally added, wherever necessary. The following points may be
noted in respect of the contents of Chapter II:-
The description of items should exactly match with the description shown for the different items in
the Statement of Budget Estimate (SBE) as included in Expenditure Budget Vol. II of the Budget
2006-07. Minor items may be clubbed to avoid cluttering up.
The term “complementary extra-budgetary resources” refers to the resources committed for the
purpose by the entities other than the Central Government. Typically, it would include matching
share from the State Governments for Centrally Sponsored Schemes or resource contribution by
Public Sector Undertakings or by private parties in the case of public private partnership projects.
There should be a separate table for each Central Public Sector Enterprise (CPSE) under the
administrative control of the Ministry, with itemized listing of major projects in hand. The Outcome
Budget will be prepared on the basis of the “Central Plan Outlay” comprising of both the Gross
Budgetary Support component as well as the Internal & Extra Budgetary Resources (IEBR)
component of the Central Plan Outlay. Thus, the Outcome Budget in respect of CPSEs may be
prepared even if there is no budgetary support.
Wherever a Ministry/Department has large Autonomous Bodies substantially dependent upon
Government for financial support, separate tables may also be considered for each such organization
as per the assessment of the Ministry/Department.
The tables concerning CPSEs or Autonomous Bodies should list out important projects in hand and
give such details as sanctioned cost, scheduled date of completion, total cumulative expenditure till
the beginning of the year, total expenditure planned during 2006-07, likely date of completion, and
the related “outputs” and “outcomes”.
The ‘final outcome’ need not necessarily be co-terminus with the annual outlays and ‘intermediate
physical outputs’. ‘Final outcomes’ may span a longer time frame than the annual final outlays and
corresponding intermediate outputs. Wherever the ‘final outcomes’ are estimated to take longer than
one year, the estimated time 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 annual basis to ensure that the ‘final
outcomes’ once indicated as achievable after five years are not forgotten or mechanically repeated in
the document from one year to the other, and that the progress made towards achieving the final goal
is reflected. Information should be provided whether the project is in the ‘initial’ stage,
‘intermediate’ stage or ‘final’ stage.
Wherever ‘physical outputs’ are in a sense the ‘final outcomes’, assessment of ‘quality of output’
through ‘appropriate indicators of quality’ should be brought out.
viii) Wherever ‘final outcomes’ are not the direct results of the annual outlays and are the cumulative
effect of past several years’ outlays, this should be clearly explained.