ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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From 50 Years Ago (18 March 2006)

the increasing need for stricter parliamentary induces a sense of financial responsibility FROM 50 YEARS AGO control. which the spending Departments tend to lack He suggested the formation of at least three under the present system of financial control.

the increasing need for stricter parliamentary induces a sense of financial responsibility

FROM 50 YEARS AGO

control. which the spending Departments tend to lack

He suggested the formation of at least three under the present system of financial control.

committees of Parliament – a committee on Today they are apt to look upon finance as

investment, a committee on contracts and something troublesome and inconvenient

a committee to review the working of the which needs to be thought about only after

public sector, all based on recent experience policy has been settled…

Vol VIII, No 11, March 17, 1956 in France. Without reports from such com-The wide variation between budget figures

mittees, any discussion on the budget, he and actuals has raised also the question of theControl over Expenditure pointed out, would be unreal. He also rec-suitability of the present financial year. (Weekly Notes) ommended a special committee of the Lok Management accounting may promote better

Sabha – an expenditure committee on theunderstanding between the Finance Ministry

With State responsibility for social and lines of the one set up in the UK between and the spending Ministries, but it will not helpeconomic activities increasing every day and the world wars – to look into the finances of to forecast the course of actual expendituretalk of relaxation of Treasury control in the the State... on public works, for example, any better. Theair, the suggestion for more effective parlia-That changes in the present system of bulk of such expenditure is incurred in thementary control is most opportune. If for financial control are under contemplation was autumn and winter. Revised budget estimatesensuring efficiency and speed, Treasury con-indicated by Shri C D Deshmukh himself in thus often go wrong by a long chalk. It has,trol is to be replaced by budget control, closer his reply to the budget debate in the Rajya therefore, been suggested that the time of theparliamentary scrutiny follows as a necessary Sabha. Departmental accounting is necessary budget should be shifted to the Diwali. If thecorollary. Ultimate control in theory rests not merely for having a record of current budget was presented on October 1, finalwith Parliament which in any case could not progress of the Plan, as he seemed to suggest. figures of expenditure would cover the monthsabdicate its power to the Government. On the The essence of this arrangement is that it when the bulk of the expenditure is actuallycontrary, the time has come for Parliament ensures that responsibility for policy and for incurred. If the new financial year roughlyto make its authority really effective. To Shri the financial consequences of this policy go coincides with the business man’s year it willAsoka Mehta goes the credit for highlighting hand in hand. Management accounting be an additional advantage.

Economic and Political Weekly March 18, 2006

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