Merger of Railway Budget with the General Budget:
- Distinct identity of Indian Railways will continue as a departmentally-run commercial unit
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Functional autonomy and financial powers will be retained by the Railways
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Railways will continue to meet their revenue expenditure from revenue receipts
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Railways will no longer pay dividend to the government totalling Rs 9,700 crore
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The merged budget will help present a holistic picture of government's financial position
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It will cut legislative and procedural requirements.
Advancement of the Budget presentation:
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Advancement of budget will help complete related legislative business before March 31
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It will enable better planning and execution of schemes from the beginning of a fiscal year
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This will preclude the need for vote on account by the Lok Sabha
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It will enable the implementation of legislative changes in tax laws from the beginning of a fiscal
Merger of plan and non-plan classification of budget:
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Earmarking of funds for the Sscheudled Castes, the Scheduled Tribes and related subjects will continue
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Plan and non-plan expenditure distinction had led to fragmented view of resource allocation to various schemes
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It was becoming increasingly difficult to ascertain the cost of delivering a service and to link outlays with outcomes.
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The focus on plan expenditure had led to a neglect of expenditures on maintenance of assets and for providing essential social services.
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The merger is expected to provide corporate-style budgetary framework having a focus on revenues and capital expenditure.
