Saturday, January 11, 2025
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Pre-budgetary exercise

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Meghalaya Government is embarking on a new initiative of involving all stakeholders and getting their views before finalising its annual budget. Normally only trade and corporate bodies take keen interest and push their agenda before any budget session. They have a vested interest in finding out where they can get tax concessions and to see that government policy towards business and industry is friendly towards them. Also they are keen to find out what investments are forthcoming so that they can leverage from those as co-investors or local partners. This time the exercise will involve a cross section of people from trade and industry, academia, civil society, NGOs etc. This means that all the stakeholders who will be invited to this unique exercise will have to do their homework and present their considered views so that it does not turn out to be a one-sided activity. The Government can present a broad road map but people have to have a shadow budget which they should try and get incorporated into the state’s budget.

This experiment is also helpful as people will come to know well ahead of time what exactly the Government has in mind and the priority areas of investment and the allocations made for each area in the budget. If people are not agreeable with the priorities listed by the Government they can say why. This will lead to a meaningful dialogue. This is the essence of participatory governance. Since Meghalaya was created we have never had such participation in budget making or even in planning. What is called District Planning should be the sum total of the planning of every village. What we have evolved is a bureaucratic practice where the district planning is done only by government officials minus public consultation. Such planning then becomes part of the State Plan. No wonder there is a huge gap between real needs and those flagged by the Departments.

A pre-budget exercise also looks at the resources available and ensures that the state does not overshoot its expenditure and land up in the red. In fact the idea is to ensure that every penny is well spent. However, along with a pre-budget exercise there is also need for a strong monitoring agency to ensure that money is not diverted and that projects are completed within a stipulated time to avoid cost and time overrun.

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