Maharashtra likely to have zero based budget

Mumbai: In a bid to have more funds for development works and reduce expenditure on administration, the Maharashtra government is likely to have a “zero based budget” this year.

Zero based budgeting is usually done for accuracy in allotting funds where the base of the budget starts from “zero”, with expenditure and receipts beginning from scratch. Otherwise, a new budget is generally based on the previous year’s base.

Many a times, government departments do not spend 100 per cent funds allotted in the budget. Till February this year, only 45 per cent of the total 2016-17 budget had been spent by all departments.

A zero budget allows budgetary provisions for every department based on how much is needed in the coming year regardless of the previous year’s activities.

The belief is this would force departments to show efficiency and necessity for funds. According to the finance department, the practice would reduce unnecessary spending.

A report of the estimate committee tabled in the assembly on Thursday said, “The department secretary has taken note of the points raised by the committee regarding intention of the zero based budget.” Shiv Sena MLA Uday Samant who helms the estimate committee said, “We had recommended that the finance department adopt methods to reduce administration expenditure so that funds can be used for development schemes.”