The Indian government has taken several steps to improve the efficiency and transparency of the public investment management system, with the aim of enhancing the quality and impact of public expenditure. Some of the key initiatives and their impact are as follows:

1. Performance-Based Budgeting:
   • The government has introduced performance-based budgeting, which links budget allocation to the achievement of specific targets and outcomes.
   • This approach is intended to improve the accountability and effectiveness of public spending by aligning resource allocation with the desired development objectives.
   • Initiatives like the Outcome Budget and the Government e-Marketplace (GeM) platform have been implemented to facilitate this shift towards performance-based budgeting.
2. Outcome-Based Monitoring:
   • The government has emphasized the need for outcome-based monitoring, which focuses on tracking the actual impact and results of public programs and schemes, rather than just the inputs or outputs.
   • This includes the use of key performance indicators (KPIs) and the regular monitoring and evaluation of program performance.
   • Initiatives like the NITI Aayog’s Development Monitoring and Evaluation Office (DMEO) have been established to strengthen the monitoring and evaluation framework.
3. Data-Driven Decision-Making:
   • The government has made efforts to enhance the use of data and evidence in public investment decision-making processes.
   • This includes the development of data portals, such as the India Data Portal and the Open Government Data Platform, to improve the availability and accessibility of government data.
   • Initiatives like the Expenditure Management Commission have been tasked with recommending ways to improve the efficiency and transparency of public expenditure based on data-driven analysis.

Impact on Improving Public Expenditure:

1. Enhanced Accountability and Transparency:
   • The adoption of performance-based budgeting and outcome-based monitoring has increased the transparency and accountability of public spending, as the government is now required to justify resource allocation based on tangible results.
2. Improved Efficiency and Rationalization of Expenditure:
   • The focus on data-driven decision-making and the linkage of budgets to performance outcomes have encouraged the government to identify and address inefficiencies, leading to the rationalization of public expenditure.
3. Alignment with Development Priorities:
   • The shift towards outcome-based monitoring has helped align public investment with the government’s development priorities and ensure that resources are directed towards the most pressing needs.
4. Challenges and Limitations:
   • While the government’s efforts are commendable, the implementation of these initiatives has faced some challenges, such as the availability and quality of data, capacity constraints within government agencies, and the need for a more comprehensive and integrated approach to public investment management.

Overall, the government’s initiatives to improve the efficiency and transparency of the public investment management system have shown promising results, but sustained efforts are required to fully realize the potential of these reforms and ensure that public expenditure has a meaningful impact on the country’s development priorities.