Which one among the following reports states that the budget is seen, not as a simple balancing of tax receipts against expenditure but as a sophisticated process in which instruments of taxation and expenditure are used to influence the course of the Economy ?
Administrative Reforms Committee Report
Hoover Commission Report
Haldane Committee Report
Plowden Report on Control of Expenditure
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CAPF – 2024
The Plowden Report (officially, the Report of the Committee on Control of Public Expenditure, published in 1961 in the UK) was a pivotal report that recommended significant reforms in public expenditure control. A key aspect of the Plowden Report was its emphasis on the need to consider public expenditure and the budget process within a longer-term perspective and its macroeconomic implications. The report stressed that decisions on public spending must be taken in the light of the overall economic prospects and available resources, recognizing the budget’s powerful impact on the economy.
Other reports listed:
A) Administrative Reforms Committee Report (India) – Multiple such committees existed, but generally focused on administrative structure and efficiency.
B) Hoover Commission Report (USA) – (e.g., 1947-49, 1953-55) Focused on reorganizing and improving the efficiency of the executive branch of the US government.
C) Haldane Committee Report (UK, 1918) – Recommended restructuring the machinery of UK government, emphasizing the importance of research and intelligence.
None of these other reports are as directly associated with the fundamental shift in viewing the budget as a tool for influencing the economy on a macroeconomic level as the Plowden Report.