Union Budget 1999-2000 Govt. of India Ministry of Finance

Budget Speech


Yashwant Sinha

Speech of Shri Yashwant Sinha
Finance Minister, Government of India
27th February, 1999

but.gif (597 bytes) Expenditure Management

39. The high rate of growth of non-developmental expenditure by Government is a growing and critical source of concern. I propose the following initiatives:

  • The most effective and lasting solution to this problem is to begin the process of downsizing Government. We are making an immediate beginning by abolishing four Secretary-level posts through a process of merger and rationalisation of Central Government departments. This will take effect on April 1, 1999.

  • To carry this process forward in a systematic way towards reducing the role and the administrative structure of the Government, we will constitute an Expenditure Reforms Commission headed by an eminent and experienced person.

  • In preparation for the next Budget, I propose to initiate a system of Zero Base Budgeting.

  • To promote transparency and curb the growth of contingent government liabilities, Government has decided to establish a Guarantee Redemption Fund with an initial corpus of Rs.50 crore. I encourage all State Governments to set up similar Funds.





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