Outcome budgeting is a budgeting technique to design the budget. It is followed by corporate and governments. In India, most of the Central Government Ministries are following outcome budgeting.
Outcome budget suggests listing of the projected outcomes under various schemes programmes. Outcomes are the end products and results of various Government initiatives and interventions, including those involving partnership with the State Governments, Public Sector Undertakings, autonomous bodies and the community. The outcomes are expected results not only in terms of monetary units or physical infrastructure but also in terms of qualitative targets and achievements.
Under outcome budgeting, each Ministry presents a preliminary Outcome Budget to the Finance Ministry, which is responsible for compiling them. The Outcome Budget becomes a progress card on what various Ministries and Departments have done with the outlays in the previous annual budget. It measures the development outcomes of all government programmes and whether the money has been spent for the purpose it was sanctioned including the outcome of the fund usage.
