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Name: Divya Rajesh Mehta Sap Id: Division/Roll No: E004 Subject: Economics Topic: Analysis On Public
Name: Divya Rajesh Mehta Sap Id: Division/Roll No: E004 Subject: Economics Topic: Analysis On Public
Name: Divya Rajesh Mehta Sap Id: Division/Roll No: E004 Subject: Economics Topic: Analysis On Public
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Introduction
Green Budgeting is a process where few tools of budgetary policy are used to achieve
environmental goals. Components included in this are evaluation of environmental impacts of
budgetary and fiscal policy and assessing the coherence towards delivery of national as well as
international commitments. This is an initiative by the Paris Collaborative and was launched by
OECD under the leadership of Secretary General Angel Gurria on 12th December 2017 at One
Planet Summit which was conducted in Paris.
Green Budgeting is one of the first projects that will be done on a cross country and cross
cultural basis which will aim to support governments to embed climate and get done with their
environmental commitments. Creation of this is a crucial step to achieve the main aim of the
Paris Agreement that involves bringing national policy frameworks and financial flows together
as well as reducing greenhouse gas emissions which was mentioned in Investing in Climate,
Investing in Growth. The Paris Collaborative is working in close partnerships with multiple
governments across the globe.
The first advantage of Green Budgeting is that it helps in achieving sustainable development as
well as the resources are used more efficiently. The main reason for using this is that it helps
understand the benefits of achieving economic goals in an environment friendly manner. The
next is it helps in the research and development department where many Green Budgeting
promotes sustainable future for businesses as it brings in green research and development into
the bigger picture. Last but not the least it helps in creating an integrated budget which includes
all the dimensions of sustainable growth ranging from ecological balance to economic growth
into an all-in-one budget. Though in this budget a lot of importance is given to non-economic
targets such as a fall in carbon emission but it also ensures coherence of economic, social,
sectoral, and environmental policies that plan fiscal measures and the budget.
IMPLEMENTATION OF GREEN BUDGET IN
INDIA WITH RELEVANT DATA
· Clean Ganga Mission- This project was initiated in the year 2015 by the Modi government.
Ganga is the largest river in India and it approximately provides water in 11 states which is
around 40% of Indian population. Its pollution has posed a significant threat to human health and
the environment as a whole. Industrial contaminants and human waste have polluted the river to
a very large extent. In the world, the Ganges is considered as the 6th most polluted river. Namami
Gange Programme was launched in India with budgetary outlay of Rs 20,000 crore for a period
of 5 years till 31 December 2020. The main objective was to reduce the pollution along with the
rejuvenation and conservation of the river and its tributaries.
· Setting up of National Air Quality Index (NAQI)- It was launched in India on 6th April,
2015. It is a tool by which numbers are used to simplify air quality data. It classifies levels of
pollution in 6 categories- severe, very poor, poor, moderate, satisfactory and good. The air
quality in India is continuously getting worse day by day, especially in the big cities like
Mumbai, Delhi, Bangalore and Kolkata. An Air Quality Index (AQI) is assigned to pollutants
like Carbon Monoxide, Nitrogen, Ozone, Fine particulate matter. This makes people aware about
the air quality and allows them to avoid places with high levels of pollution.
· Compensatory Afforestation for Forest Conservation- In the year 2016, the Indian
Parliament passed Compensatory Afforestation Fund Act. It is an appropriate mechanism which
seeks to provide at both the state and centre, a speedy, transparent and efficient utilisation of the
amounts which are released and realised in lieu of the forest land which was diverted for
purposes which are non-forest.
· National clean air programme- it is formulated as a long term and time bound strategy
undertaken at the national level to tackle the problem of increasing pollution in a comprehensive
manner. It has a total tentative cost of Rs 637 crores. It aims at implementing a pollution control
action plan which is city specific in around 100 cities. For successful implementation of targets,
it aims to set up an effective and efficient multi layered institutional framework.
· Green Skill Development Programme- It was initiated under the Environment Information
System Scheme (ENVIS). For skill development among the youth. The green skill development
programme (GSDP) was developed by the Ministry of Environment. It aims to develop skills
amongst the youth relating to environment protection, forest, wildlife sectors to enable them to
be employed or self-employed. It was launched in June, 2017 and the jobs offered are Para
Taxonomists and biodiversity conservationist. The scope has become wider and the program is
being extended to an all India level which covers other green skills, including areas such as ETP
Operation, Pollution Monitoring, Waste Management, Forest Management, Water Budgeting &
Auditing, Wildlife Management, Conservation of River Dolphins, Mangroves Conservation,
Bamboo Management & Livelihood Generation, etc.
· Swach Bharat Mission- The Government of India initiated it in the year 2014. It is a country
wide campaign to improve solid waste management and elimination of open defecation. In the
year 2020-21 Rs 12,294 crore was allocated for the nation-wide cleanliness campaign. It covers
4041 towns across the country and aims to clean roads, streets and infrastructure. It is one of the
most famous campaigns of the country. The various objectives it aims at achieving are
i) To encourage and promote the concept of sustainable sanitation practices and creating
awareness about health and hygiene.
1) Lack of support by political leaders- Though various heads of state have signed various
Acts and have promised to commit themselves to incorporating the objectives of green budgeting
and sustainable development, very little can be seen from the action of the governments towards
the rightful implantation of the idea. Even if funds and resources are allocated for the cause,
many projects have not been started or completed on time.
2) Conflicting Objectives- The economic objectives of any government aims at the raising the
levels of growth and development in terms of production of goods and services at the highest rate
possible however green budgeting requires the allocation of resources in such sustainable way
that there is a scope for betterment of standards for the future generations. Thus the economic
and green budgeting objectives create a conflict as to which kind of strategy to choose.
3) Lack of tools for measurement- Despite development of many statistical tools, there is a
deficiency in the tools to measure the environmental costs, real welfare of living, environmental
standards etc. Due to lack of such important data the policy making process is affected. Correct
decisions can’t be taken due to lack of such data.
4) Lack of interest from private sector- Green budgeting is not the sole responsibility of the
public sector/government. There shall be an equal support through investments in green practices
by the private sector while planning their activities. Private sector has recognized and contributed
to the cause but not to its full capacity. A lot of green technology is available in the market but
the reluctance due to relatively higher costs of such technology has led to a miser response.
5) High Switching Costs- Investing in green technology means shifting from the traditional
technology to a new kind of technology. The shift is quite expensive in terms of the research and
development cost, training cost, implementation cost, fixed costs etc. Due to such costs it
becomes a constraint in the implementation of the green budget.
The awareness regarding green budgeting has increased globally. Every organisation now
incorporates some kind of green budgeting techniques in its strategies but the major concern is
the type of response this whole is getting. Though there have been talks and awareness, no real
success has been seen until now despite holding global level summits and conferences. There has
not been a concentrated and focused effort. Green Budgeting has great chances of success if the
right kind of implementation is done.
As in the case of India, Budget 2019 saw an increase in the funds allocation of 10.4% from 2675
crore in 2018-19 to 2955 crores in 2019-20 for the ministry of Environment, Forests and Climate
Change. The government has also been focusing on the idea of Electric Vehicles (EV) recently
as a departure for fossil based fuels. Despite the allocation of funds, there is not a great picture of
the implementation of various programmes. The EV concept has not moved past some tax
deductions. There are no plants set up for production of lithium ion batteries which power
E-vehicles nor an infrastructure project for vehicle charging stations. The procurement by the
government of electric vehicles has also been meager. The budget speech talked about a
pollution free India but no specific programmes are developed for the same. For example, the
stubble burning issue in Punjab and Haryana has been occurring recurrently yet there has not
been any kind of permanent solution found for it. Many cities like Chennai and Latur face water
shortage in summers however the government, State as well as central, has not taken any steps
for water replenishment in these areas under the Har Ghar Jal Scheme. Also nothing has been
said about the formulation of the Green Protection Fund till now.
The above examples show that the case of Green budgeting is being talked about but it remains
only on papers. There has been no real progress in the area of green budgeting. This matter like
many other issues is not being addressed in a proper way by the leaders. The success of green
budgeting lies in the political will of the governments as well as the willingness of people in
general to adopt small measures individually towards greener life.
SIGNIFICANCE OF SUSTAINABLE DEVELOPMENT
Economical advancement is a hard theme to make sure about in light of the fact that it
comprises a wide scope of things. Because of the detail and multifaceted nature of this point, it's
ideal to look at its significance comprehensively to have the option to get a handle on it without
any problem. The populace is the primary factor driving up practical improvement crusades.
Thus, the significance of sustainable improvement can be seen from this viewpoint:
The blast of populace implies individuals should scramble for the restricted life
fundamentals like food, sanctuary, and water. Sufficient arrangement of these fundamental needs
predominantly relies on foundations equipped for supporting them for quite a while. On the off
chance that legislatures demand using petroleum derivative based wellsprings of energy rather
than inexhaustible and reasonable choices, the expense and natural impacts of providing these
fundamental needs would turn into a difficult task.
2. Rural Requirement
Globally, a system has been made for reallocating speculations towards the green
economy, which at first may prompt more slow potential financial development rate for a couple
of years, as inexhaustible regular assets are renewed (an impact that can be solid in certain parts,
for example, fisheries), however over the long haul it will result into quicker monetary
development. The UNEP report on Green Economy additionally underlines different advantages
for the economy as it prompts decrease in the dangers of unfriendly negative occasions related
with environmental change, water shortage and vitality stuns while making expanded work.
Green spending gives us the affirmation that the present just as the individuals later on are
furthermore hazard free and safe. It gives us a sentiment of satisfaction that we care for the
people, yet for all the living animals, typical resources, vegetation, etc. Consequently making
spending green isn't just about how much store is distributed for common life or woods
confirmation. It is connected to consolidating them into each aspect of our economy and to
ensure that there is no wasteful and undesired use of trademark resources.For some earlier years,
green issues in India are either immediately included or disregarded in FM's spending talk.
The first and solid impetuses for Green Budgeting came into the Agenda 21 and
Brundtland Report that emphasizes the need to 'ensure the adequacy of money related, social,
sectoral, and biological methodologies, and plans instruments, including budgetary measures and
the monetary arrangement'. The pattern of Green arranging can be similarly seen as being fused
into the Green Economy as a monetary improvement model, which is genuinely limited to the
current 'dull' economy system which relies upon oil based commodities. The Green Economy
relies upon the theory of organic budgetary issues that bases on the relationship of human
economies and basic natural frameworks and the negative impact of human financial activities
on ecological change under United Nations Environment Program-UNEP.
CONCLUSIONS
This investigation pointed: To think about plan, development, and commission
stages between regular also, green structure development ventures dependent on a thorough
writing audit; To explore normal difficulties that venture directors experience while overseeing
green structure development ventures; and in conclusion To propose some conceivable answers
for improving the current uncovered that the primary dissimilarities among regular and green
development ventures are the degree of subtleties furthermore, correspondence required. Concise
schematic plan is generally sufficient at the arranging phase of regular ventures while green tasks
require standout correspondence which must be accomplished through conveyance frameworks
like plan assemble, where building plan and development is completed as a solitary substance.
Besides, itemized coordinated plan measure is utilized toward the beginning of the undertaking
as not at all like customary structure configuration, green plan highlights are exceptional and
require profound joining with each building perspective.
Results from the study uncovered the main 5 difficulties in overseeing green structure
development ventures and there are:
(1) Increase of Project Cost;
(2) Lack of Communication and Interest among Undertaking Team Members;
(3) High Implementation Cost of Green Practices;
(4) Lack of Credible Exploration on Benefits of Green Buildings; and
(5) Lack of Interest from Clients. These difficulties were discovered to be interrelated, at last
bringing about a significant expense premium of green structures.
The need of R&D on advantages of green structures and green innovations is a
principal driver behind the absence of interest for green structures to go past administrative
necessity. The people included ought to think about the utilization of water and energy, the
nature of the indoor condition, material segment and the impact the structure has on its site Note
that green development innovation is right now at the most progressive level than at any other
time, and as the gracefully of non-sustainable assets on the planet gets uncommon and costly,
green innovation keeps on expanding its criticalness. The green capital planning approaches are
useful for manageable advancement of speculation ventures just as for upkeep of the break
condition. The utilizations of these methodologies anticipating assessing the speculation
undertakings will make the legitimized choices having legitimate equalization of money inflows
and outpourings. In general, the green capital planning approaches are the inspiration approaches
for venture choice in best and effective manners. In sustainable economic and financial
development, green finance becomes a global concern, practical monetary and budgetary turn of
events, green accounts become a worldwide concern.. Paper green financing is talked about in
detail and attempts to show that it is fundamental for the advancement of a nation. Accordingly,
it tends to be inferred that India has an incredible potential to make a green foundation required
for green money by conquering the obstructions and making mindfulness among the corporate
residents for more manageable turn of events.
WEBLIOGRAPHY AND BIBLIOGRAPHY
● www.conserve-energy-future.com
● h ttps://greengrowthknowledge.org/
● https://www.tandfonline.com
https://blog.forumias.com/answered-what-is-green-budgeting-do-you-think-that-it-can-help-in-ta
ckling-the-problem-of-climate-change/
http://www.oecd.org/env/cc/one-planet-summit-paris-collaborative-on-green-budgeting-decembe
r-2017.htm
https://www.oecd.org/environment/green-budgeting/#:~:text=Environmentally%20responsive%2
0or%20green%20budgeting,of%20national%20and%20international%20commitments.