NDA Govt strengthened budgetary process, implemented various reforms: FM

Prioritising the transparency in its budgeting practices and numbers, the minister further asserted that the government would continue to maximise the value of taxpayers’ money by putting it to the best possible use. “Countries with transparent budgets are often viewed favourably by international bodies such as the International Monetary Fund (IMF) and the World Bank which can lead to improved global trust,” she said.

Posting her views in a series of tweets on X, Sitharaman said, “This starkly contrasts the @INCIndia-led UPA government’s repetitive practice of hiding the deficits through off-budget borrowings and issuance of ‘Oil Bonds’, which somewhat covertly shifted the fiscal burden to future generations. Under UPA, standard fiscal practices were routinely changed to make Budget numbers look favourable. The last decade has witnessed a substantial improvement in the sanctity and credibility of the Union Budget, leaving past constraints and archaic practices behind,” she said.

“Our budgets are characterised by fiscal prudence, transparency, and inclusiveness, ensuring investments in social development and infrastructure. We make judicious & efficient use of every rupee collected from our taxpayers and give them a transparent picture of public finances. Various historic decisions and reforms have been taken by our government to strengthen and bring transparency to the budgetary process and practices,” Sitharaman said, adding “Our government has reshaped the budget from a mere record of expenditures into a strategic blueprint for equitable development.”

The minister further said that the government has taken various reforms to strengthen the budgetary process and practices. “Since FY 2017-18, the budget presentation has been shifted to 1st February instead of the last working day in February. It effectively advanced the expenditure cycle by two months. Reform in government expenditure by bringing in a treasury single account or TSA for the ‘just-in-time’ release of funds to autonomous bodies has lowered the borrowing costs for the Centre. “The TSA has resulted in savings of more than Rs 15,000 crore to date,” she said.

The finance minister also said that the Union government administered 108 centrally-sponsored schemes (CSS) through state and UT governments, with a budget of approximately Rs 5.01 lakh crore for FY 2024-25 and Rs 4.76 lakh crore for FY 2023-24. Previously, it was challenging to ascertain the timeliness and amount of funds released to the implementing agencies under a CSS and to determine whether the funds were from the Centre or the state,” she added.