Which of the following are the reforms introduced in Budget 2017-2018

Which of the following are the reforms introduced in Budget 2017-2018 ?

1. Presentation of Budget advanced to 1st February to enable the Ministries to operationalise all activities from the commencement of the financial year
2. Merger of Railway Budget with General Budget to bring Railways to the centre stage of Government’s Fiscal Policy
3. Removal of plan and non-plan classification of expenditure to facilitate a holistic view of allocations for Sectors and Ministries

Select the correct answer using the code given below :

[amp_mcq option1=”1 and 3 only” option2=”2 and 3 only” option3=”1, 2 and 3″ option4=”1 and 2 only” correct=”option3″]

This question was previously asked in

UPSC CAPF – 2017

All three listed points were significant reforms introduced in the Union Budget for 2017-2018.

Budget 2017-18 marked a significant departure from previous practices. The date of budget presentation was advanced from the last working day of February to February 1st. The separate Railway Budget was merged with the General Budget. The traditional classification of expenditure into ‘Plan’ and ‘Non-Plan’ was discontinued and replaced with a ‘Capital’ and ‘Revenue’ classification.

Advancing the budget presentation allowed more time for budgetary allocations to be approved by Parliament before the commencement of the financial year (April 1st), thus enabling ministries to start spending from the beginning of the year. The merger of the Railway Budget aimed to integrate the financial planning of the Railways with the overall fiscal policy of the government. The removal of Plan/Non-Plan distinction aimed at focusing on the quality of expenditure and whether it contributes to creating assets (Capital) or covering running costs (Revenue), irrespective of whether it was under a ‘Plan’ scheme previously.

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