1. Incremental Budgeting: It is aimed at small incremental changes in the performance targets of budget to arrive at the upcoming budget. All the allocation of past year budget is given a certain increase (in percentage terms). Thus, last year’s budget acts as a base. This is partially followed in India while preparing budget as resource allocation to each sector in the upcoming budget is not just increased, but it can also be cut as per the requirements. For example, the allocation for FY 23 to Mahatma Gandhi National Rural Employment Guarantee Act was Rs 89,000 crores. However, in FY 24, it was reduced to Rs 60,000 crores. Thus, changes were made but it was not incremental.
2. Zero Base Budgeting: It is an approach that starts budgeting from scratch by justifying every expense. In this approach, last year’s figures are given least importance. Thus, all the policies and schemes of the government are given closer look and holistic modifications are done, which may include even scrapping an ongoing programme. This is rarely followed in India while preparing budget as the process is cumbersome and time consuming, which is not feasible in a big country like India where budget exercise is too complex.
3. Performance/Outcome Budgeting: It is a system of presenting public expenditure in terms of functions and programmes reflecting the output and its cost. Thus, expenditure incurred on programmes and results which follow are correlated. Outcome is measured in terms of physical quantities and is prepared by respective ministries/departments. This has been followed in India since 1968 based on the recommendation of the First Administrative Reform Commission. However, in 2005-06 it was merged with Outcome Budgeting due to redundancy of process.
4. Gender Budgeting: It has been adopted by the Government of India as a powerful tool for promoting gender equality and ensuring adequate budgetary provisions through gender responsive planning and budgeting processes. It is not an accounting exercise but a broader framework to ensure gender perspective in policy/plan formulation. In the detailed budget document, it is reflected in two parts:
i) Part A: 100% Women Specific Programmes which reflects allocation of funds exclusive for women.
ii) Part B: 30% Women Specific Programmes which reflects allocation which have at least 30 percent allocation of funds for pro-women schemes.
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