Clipped from: https://www.thehindubusinessline.com/opinion/towards-transparency-in-budget-making/article69143731.ece
It will help citizens relate to public expenditure and its benefits
When state and national or even municipal governments spend money on any scheme, they should give the per capita expenditure. Likewise, if there is any earning or benefit from any scheme the per capita benefit should be computed and stated. This will enable every citizen to realize his/her own stake, relate it to his own persona and life. He/she will comprehend the value or otherwise of the expenditure or benefit or the cost-benefit per capita. Scandinavian countries, for instance, make known to the citizens, how the tax is spent head-wise.
Implementing a per capita approach to reporting government expenditures and benefits can enhance transparency and help citizens understand their individual stake in public finances.
Here are some illustrative examples:
Healthcare expenditure: Governments often allocate substantial funds to healthcare services. By reporting the per capita expenditure, citizens can see how much is spent on healthcare per person.
Education spending: Educational investments are crucial for societal development. By calculating the per capita spending on education, individuals can understand the average investment made for each student’s education. The World Bank offers indicators such as government expenditure per student, expressed as a percentage of GDP per capita, to facilitate such assessments.
Infrastructure projects: When a government undertakes infrastructure projects like building highways or bridges, reporting the total cost alongside the per capita expenditure can help citizens grasp the financial impact on an individual level. For example, if a new highway costs ₹500 crore and the country has a population of 50 million, the per capita expenditure would be ₹10.
Social welfare programmes: In the case of social welfare programmes, governments can report both the per capita cost and the per capita benefit. For instance, if a government spends ₹100 crore on a child support programme benefiting 1 million children, the per capita benefit per child would be ₹100.
Public safety and defense: Expenditures on public safety and defense can also be translated into per capita figures. If a country spends ₹20,000 crore annually on defense and has a population of 200 million, the per capita expenditure would be ₹1,000.
By adopting this per capita reporting approach, governments can foster greater transparency and enable citizens to relate public expenditures and benefits to their personal lives, thereby enhancing public understanding and engagement in governmental financial decisions.
The writer is former DGP CBCID
Comments
aniltikotekar4sme.com 