The government needs to adopt a multi-year expenditure outlook while preparing the budget, NITI Aayog has suggested.
“The Centre’s budget is set for an annual horizon. This is in contrast to most modern economies which employ a multi-year horizon when preparing the budget. Such an approach is essential for better realignment of expenditures to priorities since the room for realignment in one year is limited and the temptation in a one-year-horizon budget is to expand all expenditures more or less radially,” it said.