| Introduction: Contextual Introduction Body: How has role of Parliament declined in budgetary process and ways to strengthen this? Conclusion: Way forward |
The Budget is more than just a financial statement; it is a reflection of a nation’s economic vision, governance philosophy, and fiscal priorities.
How Parliamentary Influence Has Declined in Budgetary Matters
- Executive Monopoly Over Budget Formulation: The Finance Ministry solely crafts the Budget with minimal consultation, often keeping even Cabinet Ministers uninformed until its presentation.
- Lack of Pre-Budget Consultations: India lacks mechanism like, pre-Budget discussions, preventing legislators from proactively influencing budgetary decisions. Indian MPs lack institutional support for budgetary research and economic forecasts.
- Declining Quality of Parliamentary Scrutiny: Parliamentary debates on the Budget are often fragmented and superficial, with many demands for grants passed without discussion.
- Ineffectiveness of Parliamentary Committees: The Departmentally Related Standing Committees (DRSCs) review budgetary allocations, but their recommendations are not binding.
- Absence of Budgetary Bicameralism: The Rajya Sabha, despite being a house of senior statesmen, has no substantive role in Budget discussions.
Impact on Democratic Accountability
- Weakening of Representative Democracy – By sidelining elected representatives, the budgetary process becomes an executive-driven exercise rather than a collective decision-making process.
- Reduced Fiscal Transparency – Off-budget borrowings and discretionary fund allocations escape proper parliamentary scrutiny.
- Inequitable Resource Allocation – Without pre-Budget deliberations, budgetary priorities may not adequately reflect public needs.
- Undermining Federalism – The lack of Rajya Sabha involvement sidelines state interests in financial matters.
Way Forward: Strengthening Parliamentary Oversight
- Institutionalizing Pre-Budget Discussions: A dedicated 5-7 day discussion period during the Monsoon Session to assess fiscal priorities and enable legislators to provide inputs.
- Establishing a Parliamentary Budget Office (PBO): Modeled on international best practices, a PBO would offer independent fiscal analysis, revenue projections, and economic impact assessments to MPs. It would enhance informed decision-making and strengthen legislative oversight.
- Enhancing Committee Effectiveness: Strengthening DRSCs by making their recommendations more binding and ensuring they review all budgetary allocations before approval.
- Revisiting Budgetary Bicameralism: Allowing the Rajya Sabha to have a consultative role in budget discussions would ensure broader representation in financial decision-making.
Conclusion
Strengthening legislative engagement in budgetary matters would not only enhance democratic accountability but also ensure that financial governance is more transparent, equitable, and responsive to public needs.
