Budget 2026: What is outcome budget, what does it include, why is it important, and more

The Union Budget will be presented in Parliament on February 1, 2026, detailing the government’s proposed taxes, expenditure priorities, and sector-wise allocations for the year ahead. A key part of Finance Minister Nirmala Sitharaman's presentation is the Outcome Budget, which links allocations to measurable results, accountability, and on-ground delivery rather than mere outlays.

What is outcome budgeting? 

Outcome budgeting is a way of linking the objectives of government schemes or programmes with the financial resources allocated and the results expected from that expenditure. Instead of focusing only on how much money is spent, outcome budgeting emphasises what is achieved with the public funds, ensuring that expenditure leads to tangible results and development outcomes.

Key aspects of outcome budgeting 

When the government manages public money, the public naturally has certain concerns about how that money is used. Outcome budgeting addresses these concerns by focusing on four key aspects:

Purpose of the Expenditure: People want to know why money has been allocated and whether it serves a real need. Outcome budgeting makes it clear what the objective of a scheme or programme is, so that the purpose of every allocation is transparent.

Process of Spending: Funds must be spent according to established rules and procedures. Outcome budgeting tracks how the allocated money is used, ensuring compliance and reducing the risk of misuse or inefficiency.

Achievement or Results: Beyond spending money, the public is interested in what is achieved through it. Outcome budgeting measures the actual outputs and outcomes of schemes, showing whether the intended objectives—such as improved services, infrastructure, or social benefits—have been met.

Accounting of Expenditure: Finally, outcome budgeting ensures proper recording, reporting, and accounting of funds. This enables the government and citizens to see exactly how funds have been utilised, providing financial transparency and accountability.

Who prepares outcome budget, where can you access it?

Outcome budget is prepared by the Central and State Governments serve to connect public expenditure with the results that the spending is intended to achieve. Outcome budgeting plays a vital role in linking government spending to the targets set for various schemes. Without this information, budget documents only present financial details. When a government department allocates funds to a particular scheme, the outcome budget document specifies the targets of the scheme and the expected results from the expenditure.

Outcome budget of the Central Government can be accessed on the websites of the respective ministries. For State Governments, these documents are generally available on the Finance Department’s website of the state. Broadly, outcome budget documents include details of the proposed expenditure for a particular scheme for the upcoming year, along with information on the expected outputs and outcomes.