BUDGETING FOR A NEW PLAN
CURRENT BUDGET PROCESS
Input-based budgeting with progress of schemes dependent upon allocation Expenditure classified into Plan and non-Plan Budget expenditure statements for schemes are divided into central sector schemes, centrally sponsored schemes and central support for state Plan schemes Medium-term expenditure framework (MTEF) projects expenditure for sectors and bigger schemes but not for all departments and programmes
FUTURE CHANGES PLANNED FROM 2017-18 ONWARDS
Outcome-based budgeting with allocation dependent upon quantifiable plans by ministries Plan/non-Plan distinction scrapped. Spending to be classified into revenue & capital expenditure New classification into three categories: establishment and obligatory expenditures, central-sector schemes, and transfer to states MTEF to project department-wise expenditure for three years on a rolling target basis