The public expenditure management is a challenge to the Government of India in context of budget making during the post liberalization period. Clarify it. (UPSC MAINS GS3 2019)
The public expenditure management (PEM)is an instrument of state policy and mechanism for good governance. The broad objective of PEM is the achievement of overall fiscal discipline, strategic allocation of resources, operational efficiency and macro-economic stability.
Various challenges faced by the government with regard to PEM
Government measures for effective PEM
With the 1991 reforms, the Indian economy was linked with the global economy. The effective PEM becomes more essential in this globalised era to meet various objectives of state policy. Various fiscal targets should be followed prudently and monitoring of resource utilization should be made robust.
Topics covered - public expenditure
|1. What is public expenditure?|
|2. How is public expenditure financed?|
|3. What are the objectives of public expenditure?|
|4. How does public expenditure impact the economy?|
|5. What are the challenges in managing public expenditure?|