Introduce basic norms of corporate governance into the entire process of budget making and then see the difference it can make
India needs to adopt something similar when it comes to spending government money. It’s quite simple really. Let each ministry fix its own budget and have the finance ministry function like the clearing house of a bank... merely examining the cheques and passing on the money. At the central, state and local levels, appoint an independent board of directors that will not only scrtunise the policy approach of each ministry, but also monitor implementation of expenditure plans. This independent board would comprise of activists, judges, media professionals, managers, CEOs and politicians from both ruling and Opposition parties. Let there be independent audits to monitor performance. Like in the corporate sector, the boards should have the power to sack a non-performing or corrupt CEO – a bureaucrat in this instance. Those caught with their hands in the till must get the Kenneth Lay treatment.
Let’s face it, though. Activists and the media are fighting an uphill battle just to force politicians and bureaucrats to comply with the provisions of the Right to Information Act. In such an event, expecting the same set of people to give up and get down voluntarily from the gravy train called the Union Budget is perhaps only an exercise in fantasy!
India needs to adopt something similar when it comes to spending government money. It’s quite simple really. Let each ministry fix its own budget and have the finance ministry function like the clearing house of a bank... merely examining the cheques and passing on the money. At the central, state and local levels, appoint an independent board of directors that will not only scrtunise the policy approach of each ministry, but also monitor implementation of expenditure plans. This independent board would comprise of activists, judges, media professionals, managers, CEOs and politicians from both ruling and Opposition parties. Let there be independent audits to monitor performance. Like in the corporate sector, the boards should have the power to sack a non-performing or corrupt CEO – a bureaucrat in this instance. Those caught with their hands in the till must get the Kenneth Lay treatment.
Let’s face it, though. Activists and the media are fighting an uphill battle just to force politicians and bureaucrats to comply with the provisions of the Right to Information Act. In such an event, expecting the same set of people to give up and get down voluntarily from the gravy train called the Union Budget is perhaps only an exercise in fantasy!
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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