In the intricate dance of project management, the age-old battle between the ‘waterfall’ and ‘scrum’ models has resonated with tech enthusiasts. These models, dictating project approaches, reflect a choice between meticulous planning and the agility of rapid changes.
Waterfall model means that all the requirements are gathered together, designing done and you have a long implementation till the outcome is achieved. Since you don’t change course in the waterfall approach, it’s important to get the inputs and plan right.
Scrum on the other hand promotes agility and rapid changes. The process of input collection, designing and planning, implementation and review all happen in frequent cycles to allow for change of course and variability. Critics argue that it de-emphasises the rigour at the start of a waterfall where everything is clearly laid out.
While proponents of the groups continue to argue in favour of their preferred approach, the VUCA world has encouraged the companies to move towards the agile approach. A similar change has happened in the Indian Union Budget.
Background
We have moved away from the Five Year plans to a new approach. The current dispensation has a lot to do with this. Before 2017, the union budget used to be presented towards the end of February allowing for little time to plan for implementation by departments based on the new allocation. This was shifted to 1st February from 2017 allowing for smooth planning and transition to a new fiscal year.
Similarly, the railway budget which used to be presented separately is now part of the union budget allowing for holistic planning of transportation in the country rather than making it a victim of politics. Other changes include going paperless, presentation in morning rather than evening as was prevalent since colonial times, etc.
Earlier budgets played an important role in determining the allocation of funds, priority of the government and the taxation and economic policy.
Diminishing influence of Budget
A number of factors have changed how the budget is perceived.
A huge portion of the revenue collected by the central government is devolved as per the Finance commission which has increasingly allocated more to states. This leaves a small portion of the resources available for the center to use.
Taxation has also become much more predictable and stable allowing for corporations and individuals to plan for the long-term and not worry about ad-hoc changes. Corporate tax rates and Income Tax rates have been progressively brought down to spur economic growth.
The GST Council composed of state Finance ministers and the Union Finance minister manages the indirect taxes and any changes are discussed and announced in the monthly meetings that happen.
Articulating Vision and Policy Goals
The central government on its part has taken advantage of the Niti Aayog, EAC, etc. to plan specific economic policies to help the nation. There is more focus on long-term planning rather than taking just a yearly view in the budget. The allocation for central schemes is now planned over multiple years to achieve the desired outcomes.
The National Infrastructure Pipeline (NIPN) launched in 2019 envisions over ₹110 lakh crore ($1.5 trillion) investment in infrastructure projects from 2019-2032. Similarly, the government has set up an Asset Monetization pipeline to monetize roads, railways, airports, telecom and warehousing assets to rotate money and invest in new greenfield and brownfield projects.
Most of the department programs and policies are centred around outcomes whether it be Jan Dhan Account, Jal Jeevan mission, Ayushman Bharat, Smart City Mission, etc. ensuring allocation of new funds to achieve the remaining targets.
Even the PLI schemes have been designed to offer multi-year incentives to increase production in specific segments of the economy. The mobile phone PLI scheme has attracted ₹54,000 crore ($7.3 billion) in investment since its launch. And this shows that medium to long-term predictability in policy benefits the economy.
Adapting to Global influences
An important benefit of the Agile approach is course correction and changes in plan as per new inputs and information. The Ukraine war, confrontation with China on the border has shaped the defence procurement policy allowing for increasing indigenization and capability building in collaboration with the private sector. The success of SpaceX has encouraged India to involve private players and startups in the Space sector.
We are a civilizational state and our culture, economy and mindset have been shaped by external stimuli and our own introspection over the millennia. We need to be ever vigilant and continue to benefit from the opportunities presented and tackle the challenges.
Conclusion
In line with the changing times, the budget has changed its shape and form akin to scrum approach and has yet remained relevant. The budget still holds a lot of value and brings in the discipline needed to manage and grow the economy which would be relevant irrespective of whether you belong to waterfall or scrum group. The nimbleness along with articulation of vision and predictable policy changes have been helpful and improvement in these areas would be welcome.