Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Monday, 1 February 2016

BMC BUDGET SUGGESTION


Dear Editor ,

In today's edition of HT , you have invited people of Mumbai , to send in their suggestions on how BMC should spend its forthcoming budget of Rs 33,514 Crores

I believe the manner of budgeting is all wrong - whether in a Municipal Corporation , a State or at the Centre

The entire emphasis is on achieving the " SPENDING ALLOCATIONS " - not on achieving " PHYSICAL TARGETS " of improvements  !

It is this EXPENDITURE mentality which is subverting the process and needs to be replaced with , what Private Sector Companies have successfully practiced for ages , to grow profitably , viz :

" MANAGEMENT   BY   OBJECTIVES  "

In this context , I reproduce below , an email that I had sent to Shri Arun Jaitleyji , before he presented the last budget - and again , recently

with regards,


hemen  parekh


Marol , Mumbai , India


( M ) +91 - 98,67,55,08,08

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BUDGETING     BY    OBJECTIVES



Dear Shri Jaitley ,


Come Feb 2015 and you will present your Budget in Lok Sabha

You will allocate thousands of crores of rupees to different ministries , for spending during 2015-16

You may even increase / decrease their allocations based on , to what extent ( % ) did they manage to actually " spend " their current year's allocations

The one and only emphasis is on " spending " !

As usual , no MP will ask :

"  But , what exactly did the Minister concerned achieve by spending this money  ?

What physical / measureable targets did the Minister succeed in reaching / exceeding , with that money  ?

Where / What are the OUTPUTS  ?

Why is it that no targets were set in advance , before the start of the year ?

How come , Minister was allowed to shoot first and then draw concentric circles around the hole afterwards ( at the end of the year ) , to claim BULL'S EYE  ?  "

In private sector , shareholders / bankers do not hesitate to sack the CMD / MD / CEO , if he fails to deliver on promised profit

Then , why are Ministers allowed to retain their posts ( - or even get kicked upstairs ! ), despite failing to deliver  ?


Dear Shri Jaitley :


MPs should know that YOU cannot answer these questions , simply because , at the time of the Budget Exercise , no physical OUTPUTS  got fixed for each Minister

What did get fixed , were only EXPENDITURE TARGETS  !

Simply because MPs passed the Budget without fixing targets such as following for 31 March 2015 :

*  Finance Minister

   >   GDP ..... 6 % ............ [ 10 % improvement ]

   >   CAD.......( -  ) 5 % .....[  20 % improvement ]


*  Commerce Minister

   >   Exports........ $ 350 Billion  ....  [ 10 % improvement  ]

   >   FDI..............$    50 Billion...... [  20 % improvement  ]


*   Railway Minister


    >   Lengths of Tracks...... 125,000 Km.....      [  Up by 10 %  ]

    >   No of Passenger Trains / day..... 10,000... [ Up by 10 % ]


*   Health Minister

   >   Chronic Hunger and Hunger Related Deaths
         8 Million / year .................................... [  Down by 20 %  ]

   >   Under-nourished people..... 200 million..... [ Down by 10 % ]


*   Social Welfare Minister

    >    Dowery Deaths / year....... 8,000...... ......[  Down by 10 %  ]

    >    People without Toilets........ 500 Million....  [ Down by  20 % ]


*   Agriculture Minister

    >    Farmers Suicide/ year..... .. 14,000...............  [ Down by 20 %  ]

    >    Food Grain rotting / year..... 5 Million tons.....  [ Down by 20 %   ]


So on and so forth for each Minister

Some caution / suggestions :

*    Ignore the numbers given above. I could be factually wrong

*    Focus on the concept of " Management by Objectives "

*    Overcome the fear of " failure to meet the targets ".

*    Overcome the fear of " being ridiculed " !

*    Don't chop off the neck that dares to stick out  !

*    Only failure is , not fixing the targets  !

*    Actual vs Targeted achievements must be measured , on an ongoing
      basis , by totally independent THIRD PARTY agencies

      Ministers / Finance Minister and these Agencies , must agree in advance , how the
      Agencies will go about " measuring " the Actual Achievements

      The method of measurement must be transparent and well publicized
      in advance

      Agencies shall have no role in fixing of Annual Targets

      That is best done by the Prime Minister - the CEO , MakeInIndia

*    There must be at least 10 performance parameters for each Minister

*    Parameters themselves could be selected / prioritized , based on an
      ONLINE PUBLIC SURVEY / OPINION POLL , from Govt web site

*    If conducting such an ONLINE POLL for the forthcoming budget is
      too late , same could be done on a printed form , by current MPs /
      MLAs / Rajya Sabha Members

*    Results of the SURVEY / POLL , must be published
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*   hemen   parekh  /  06  Dec  2014






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