Answer: Hint: finance is crucial in implementing any goals decided through political
processes. The government finance is bound by the budgetary process, various stakeholders
and approvals therein.
The budgetary process reflects:
- Plans and priorities of the government
- Demand for grants by various ministries and their approvals
- Responsiveness by the bureaucracy at the field level as they execute the policy, incur expenditure and accordingly submit demand for grants for next fiscal Accountability to the parliament for the expenditure incurred.
- Opportunity for the parliamentary oversight, particularly for the opposition Here the process becomes political process,
- The allocation of grants/funds is exclusively in the hands of the government. Thus, it reflects ‘the authoritative allocation’ (Easton).
Note: To take UPSC mains tests on GS Mains Q & A, click the link that is attached. - The entire process goes through deliberation, discussion and feedback mechanism where the government has to incorporate the demands from various interest groups and political allies.
Budget also has an orientation to satisfy populism where allocation of resources is not rational rather appeals to emotions.
The art lies in balancing various political processes and creating and implementing a budget that would eventually maximise happiness in a utilitarian context without compromising the ideals of justice.
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