- Making the budget a flexible and responsive mechanism for carrying forward the policies, strategies and priorities,
- Introducing a progressive process of the empowerment of line ministries to manage their own budgetary cycles in an overall context which provides the maximum achievable level of predictability of resource flows,
- Shifting the role of the central agencies like Ministry of Finance and the Planning Commission in budget management from micromanagement of transactions to strategic management of the application of resources to achieve results.
If inputs (resources) are provided then activities can be undertaken. If activities are undertaken then outputs will be produced. If outputs are produced then outcomes will be achieved. If outcomes are achieved then the organization will have made progress towards achieving its overall goals.
The Goal means the overall objectives to which the ministry is aspiring. Summary of the goals is also called Vision Statement. Output is delivery of service or product and Activities are special tasks undertaken to achieve the required output. Inputs are resources required to undertake activities and Outcome is the result (or impact) of output on the target population.
Let us hope that MTBF will prove to be a welcome innovation.