Do you think budget making process in India is a participatory one? Discuss its shortcomings. (200 Words)
Participation of people in budget making nothing but participatory budget. Generally, in the process of budget making, Budget making division of finance ministry collects the estimation of expenditure for the next fiscal year and finalizes the estimations. Before finalizing it holds the discussion with respective ministries and departments. And in the process various lobbying groups like industrialist, trader, and exporters express their interest. However, there is no lobbying group which represent the poor and marginalized people in negotiating with the finance ministry. Thus the process of budget making is considered to be non-participatory in nature.
Reasons for it to be so:
- There no knowledge about what is budget and how it is made in general public and even in the most literate people.
- Process of budget making top down approach and is made in very secrete and closed environment.
Why Participatory budget:
- Transparency, Responsibility and accountability are the basic principles to be followed in public finance management and through participatory budget they will be enabled and increased
- People will be able to negotiate their demands according to their priorities making budget allocation more efficient and output based.
It is very difficult accommodate everyone’s demand in the budget but participatory budget will give the budget makers a chance to hear what people actually want out of their money thus raise their faith in system and making their lives better.