GS4 · UPSC Mains

Abhay is a senior officer in a government think tank. He is responsible for analysing the demands for funds from various ministries and state governments. His job mandates making recommendations to the government for prioritising the budget expenditure. Abhay's department is presently busy in analysing the demands for funds from five different ministries. The first demand is from the Ministry of Defence for 500 crore rupees. The Ministry of Defence has solicited funds for the acquisition of state-of-the-art bullet proof vests and assault weapons for the armed force personnel posted in insurgent invested areas of Jammu and Kashmir. The second demand is from the Ministry of Heavy Industries. The Ministry of Heavy Industries has demanded 300 crore rupees for the purchase of electric scooters. Distribution of electric scooters was one of the election promises of the incumbent union government in order to reduce pollution levels in the country. Further, as two states are set to go to poll next year, there is an additional pressure from a senior cabinet minister to prioritise this demand. The third demand is for 200 crore rupees from the Ministry of Road Transport. The Ministry of Road Transport has proposed to build robust road connectivity in left wing affected areas and also in the hilly states. It is reasoned that while road connectivity will have a multiplier impact on the economy, it will also improve the governance process. The fourth demand is from the Ministry of Health for 200 crore rupees. The Ministry of Health has targeted to increase the insurance penetration in the country. It is argued that increased insurance penetration will boost public health and reduce out-of-pocket expenditure. The fifth demand is for 300 crore rupees from the Ministry of Women and Child Development. The MoWCD aims to expand its nutrition programme in the country. It is believed that in order to check the high levels of stunting and wasting in the children, the State needs to take a larger role. While each of the government schemes is important, the fiscal space available with the exchequer is limited. Accordingly, Abhay has an elbow space to accommodate schemes worth 1000 crore rupees. Now, it is incumbent upon Abhay to allocate the available money in the most prudent fashion. a) What principles should guide Abhay in the allocation of money? b) Imagine yourself in the position of Abhay. In what order will you prioritise the available funds and why? (20 marks, 250 words)

20 marks · 250 words · 4 toppers answered this · seen 2023, 2025

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