Plan Non-plan distinction has been done away with.

Outlay is the amount that is provided for a given scheme or

project in the Budget.

Output refers to the direct and measurable product of

program activities, often expressed in physical terms.

Outcomes are the collective results or qualitative

improvements.
EXAMPLE

Pradhan Mantri Fasal Bima Yojana

Outlay - more than 14000 crores

Output - Insurance coverage of 50% of the gross

cropped area in country

Outcome - Risk minimization by 60 % of about 60

million farmer
Gender Budgeting

● To ensure that gender commitments are translated in to

budgetary commitments.
● Women lag behind men on many social indicators like
health, education, economic opportunities, etc. Hence,
they warrant special attention due to their vulnerability and
lack of access to resources.
● Budget allocation has the potential to transform these
gender inequalities.
● Budget 2001-02 was analysed first time from a gender
perspective.
● 2003- Ministries/Departments started having a chapter
on Gender issues in their Annual Reports
● Presently budget contains a statement of which-
● Part A reflects Women Specific Schemes, i.e. those
which have 100% allocation for women.
● Part B reflects Pro Women Schemes, i.e. those where
at least 30% of the allocation is for women

2019-20---1.31 lakh crore.

EXTERNAL SECTOR

● BOP- The balance of payments is a statement of all

transactions made between entities in one country and the
rest of the world over a defined period of time
● How much money is going in and out of a country.
● Usually, the BOP is calculated every quarter and every
calendar year.
●
● Trades conducted by both the private and public sectors
are accounted for.
Potential transactions between entities in one country
and the rest of the world ---

● Export and import of goods and services

● Inward and outward investments
● Remittances of private people
● Transfer of Govt grants
● Private loans
● Govt loans
● Interest Payment
● Dividend payment
● Profit ,foreign aid
Why is it important to keep track of these transactions?

Can we leave this sector unregulated ?

Should we allow liberally to do such transactions ?

Can we classify these transactions in broad categories?

Can we transact without foreign exchange?

Is there any international agency related to it ?

BOP can be divided in Current and Capital account
Current Account is also classified in following way--

● Trade in goods (Balance of Trade)

● Factor trade in services
● Non factor trade in services
● Private transfer payments
● Official transfer payments
● Transfer payment (or government transfer or simply transfer)
is a redistribution of income and wealth (payment) made
without goods or services being received in return.
● Examples--welfare, financial aid, social security, and
government making subsidies for certain businesses (firms)
● Official transfers
● Comprises transfer payment between governments of the
reporting country and the rest of the world.
● Private transfers-
● Comprises transfer payments between private persons and
non official organizations of the reporting country and the rest
of the world that carry no provisions for repayments. Included
are workers' remittances ,gifts etc
CAPITAL ACCOUNT--

INVESTMENT (FDI<FPI,FII),LOAN (SOVERIGN,COMMERCIAL),NRI ACCOUNT

● Convertibility of currency means when currency of a country
can be freely converted into foreign exchange at market
determined(demand and supply) rate of exchange
● Compared to current account convertibility, capital
account convertibility is a complex issue because of the
peculiar feature of capital account transactions. An important
one is the high frequency and volume of international capital
movements across borders which may produce many
macroeconomic effects in host countries like India.