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Par panel recommends calendar-based budgeting system for culture ministry
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....ar panel recommends calendar-based budgeting system for culture ministry<BR>PTI News<BR>Dated:- 25-3-2025<BR>PTI<BR>New Delhi, Mar 25 (PTI) A parliamentary panel has recommended the government develop a cultural calendar-based budgeting system for events that takes into account cyclical landmarks such as Kumbh Mela for long-term financial planning. The report on the 'Demands for Grants (2025-26) ....
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....of Ministry of Culture' by the Department-related Parliamentary Standing Committee on Transport, Tourism and Culture was presented in Parliament on Tuesday. The panel said in its report it observed a "pattern wherein the Ministry relies heavily on mid-year budgetary adjustments, seeking substantial increases at the RE (Revised Estimates) stage instead of ensuring that BE (Budget Estimates) accura....
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....tely reflects financial needs". In the opinion of the Committee, this approach introduces uncertainty into long-term financial planning and may disrupt the timely execution of projects. A more accurate and predictive budget estimation process is required to minimise dependency on adjustments during the stage of revised estimation, it said. "The Committee recommends that the Ministry strengthen....
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.... its engagement with the Ministry of Finance to establish a more flexible, needs-based budget allocation framework, one that will ensure funding provisions are more effectively met with practical expenditure requirements," the report said. Also, the ministry should establish a Corporate Social Responsibility (CSR) engagement cell to facilitate partnerships between businesses and cultural projects....
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...., capitalising on the 100 per cent tax exemption available under Section 80G (ii) of the Income Tax Act. The Committee observed that there is a significant reduction in the ministry's total budget from Rs 3,406.90 crore (actual) in 2023-24 to Rs 3,260.93 crore (Revised Estimate or RE) in 2024-25, and an increase to Rs 3,360.96 crore in the budget allocation for 2025-26. The panel observed the re....
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....duction in 2024-25 can be attributed primarily to the one-time expenditures related to the Azadi Ka Amrit Mahotsav (AKAM). The AKAM celebrations saw a "substantial increase" in expenditure, with a revision of the Budget Estimate (BE) from Rs 185 crore to Rs 335 crore during 2023-24, resulting in an expenditure of Rs 334.39 crore, which was more than 80 per cent over and above the original BE all....
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....ocation, the report said. The Committee, in its report, also noted that the budget formulation process for 2024-25 "did not adequately account" for key national cultural commitments, including the Kumbh Mela at Prayagraj and the Republic Day tableau, leading to an additional request for funds mid-year. The omission of such significant expenditures at the BE stage does seem to indicate "deficienc....
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....ies" in financial forecasting and contingency planning, it said. "The Committee recommends the implementation of a comprehensive Multi-Year Budgetary Framework (MYBF) for the Ministry of Culture that extends beyond the annual budget cycle," it said. This framework should incorporate a "five-year rolling budget projection" with annual revisions to accommodate changing priorities while maintainin....
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....g long-term vision; categorisation of expenditures into core recurring activities, planned development initiatives, and special events or commemorations with separate budgetary provisions for each category, the panel said. The committee also said it "strongly recommends" the development of a cultural calendar-based budgeting system that maintains a comprehensive five-year cultural events calenda....
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....r, identifying recurring festivals, commemorations, and international engagements with historical budget requirements. It should integrate cyclical cultural events such as the Kumbh Mela (which occurs every 12 years) into "long-term financial planning through a dedicated cultural events fund, it said. The panel also recommended establishment of a 'Budget Stabilisation Reserve' of approximately 5....
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.... per cent of the total annual allocation to account for unforeseen cultural activities or emergencies, preventing mid-year fiscal disruptions. "This approach would mitigate the abrupt budgetary fluctuations witnessed between 2023-24 and 2024-25, and provide greater stability for cultural institutions dependent on government funding," the report said. The panel also suggested developing an "AI-a....
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....ssisted forecasting model" that analyses historical expenditure patterns and predicts resource requirements for upcoming cultural activities based on past event costs, inflation factors, and attendance projections. "This systematic approach would ensure that cultural events of national importance receive appropriate financial provisions at the Budget Estimate stage rather than relying on mid-yea....
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....r adjustments," it said. PTI KND TIR TIR<BR> News - Press release - PIB....