Political Science · Governance & Public Policy in India
UGC NET June 2015 Political Science
Performance budgeting was introduced in India on the recommendation of:
AEstimates Committee
BGorwala Report
CFirst Administrative Reforms Commission Report ✓ Correct
DSanthanam Committee Report
Correct answer: (C) First Administrative Reforms Commission Report — Performance budgeting was introduced in India on the recommendation of the First Administrative Reforms Commission Report, so the answer is First Administrative Reforms Commission Report.
Explanation
★Performance budgeting was introduced in India on the recommendation of the First Administrative Reforms Commission Report, so the answer is First Administrative Reforms Commission Report.
★The First ARC urged shifting from traditional line-item budgets to a performance basis.
★Performance budgeting links resource allocation to the services and outputs delivered.
★In 1964 the government invited the American expert Frank Krause to study its feasibility in India.
★Performance budgeting was then adopted in selected central departments from the late 1960s.
★The Estimates Committee scrutinises budget estimates but did not introduce this system.
★The Gorwala and Santhanam reports dealt with public administration and corruption respectively, not this reform.
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