Government to take measures to assess quality of expenditure

NEW DELHI: The government is putting in place new measures to assess the outcome of expenditure on building schools, toilets and waterbodies and ministries have asked to prepare indicators to monitor the quality of spending, a top finance ministry official has said.

"We are doing a close monitoring of the pace of expenditure. Monitoring the outcome is more important. That is the direction in which we will have to move," Ashok Lavasa, who recently took over as the finance secretary said in an interview.

The Haryana-cadre officer said financial advisers in various ministries have been asked to initiate discussion within their respective ministries so that the mechanism can be rolled out soon.

For example, under MNREGA or drought related programme, conservation of water bodies will also monitor the impact on the water table as a result of the spending on the activity.

"The objective of the scheme is to make water available and improve the water table by resorting to water conservation measures. So I think we will have to move to those refined indicators of output and outcomes," Lavas a said.

"Building of schools, actually you will be able to measure the effect of your expenditure when you look at the enrolment ratio and the dropout ratio. In fact, one of the important components of the Swacch Bharat Abhiyan is to start monitoring the usage of toilets not only the construction," he said, adding that the environment ministry has already implemented monitoring of discharge of effluents and emissions on the Ganga belt covering 746 highly polluting industries.

Lavasa, who recently moved into North Block from the environment ministry, said multiple parameters would have to be worked out to be able to measure the value of your expenditure.

He said that the government was ensuring adequate spending in the economy and there was a 17 per cent rise in expenditure during the first two months of the current financial year.