Policy Brief: Green Budget- Growth and way forward
01/08/2023
The research article explores the concept of "green budgeting," which involves increasing public funds dedicated to environmental programs and mobilizing fiscal policy for environmental sustainability. With global temperatures already rising due to climate change, countries worldwide are committed to combating its adverse effects. Green budgeting aims to integrate climate and environmental considerations into decision-making processes, fostering budget transparency and supporting the achievement of international and national commitments and goals.
The study examines green budgeting methodologies used worldwide, such as the Climate Assessment of Local Budget, Climate Public Expenditures and Institutional Review, and Climate Budget Tagging. It also analyzes the experience of the Government of Bihar in implementing a green budget to promote environmental sustainability and climate action.
The findings reveal that the Green Budget of Bihar has steadily increased over the years, with a significant focus on climate action, life on land, clean water and sanitation, and zero hunger. Various departments contribute to different activities under green budgeting, with a focus on program implementation, technology, and infrastructure. Additionally, the research highlights the potential of green budgeting in promoting green bonds, carbon pricing policies, environmental impact assessments, and sustainable investment strategies.
The study concludes that green budgeting can serve as a catalyst for adopting financial tools that support sustainable development and reduce environmental impacts. The implementation of green budgeting requires a well-functioning budgeting system, strong leadership, political ownership, and effective communication with stakeholders. Going forward, green budgeting has the potential to drive low-carbon development and promote climate action through inclusive and coordinated efforts across sectors and governments.
Ghazal Hashmi, Vivek Tejaswi