India’s Parliament needs a stronger role in budgeting

Source: The post India’s Parliament needs a stronger role in budgeting has been created, based on the article “India’s marginalised Parliament in budgetary affairs” published in “The Hindu” on 22nd March 2025. India’s Parliament needs a stronger role in budgeting.

UPSC Syllabus Topic: GS Paper2-Polity-Parliament and State legislatures—structure, functioning, conduct of business, powers & privileges and issues arising out of these.

Context: The article examines India’s Parliament’s limited role in shaping the budget. It compares this with other democracies where legislatures significantly influence economic policy. The article emphasizes reforms needed to boost parliamentary involvement in budgeting.

For detailed information on Declining Role of Parliament in Ensuring Accountability of Executive read this article here

Parliamentary Influence on Budgets Globally:

1. Historical Struggle: Historically, legislatures fought hard to control public finances to prevent executive overreach.
2. British Example: In the 19th century, British Parliament gained significant financial control.
3. Active Role Today: Today, some parliaments actively draft and modify budget proposals, ensuring thorough scrutiny.
4. Limited Role in Some Cases: Others play a limited role, merely approving budgets without detailed oversight.
5. Committee-Based Scrutiny: Certain legislatures have specialized committees for in-depth budget discussions, while others rely on centralized finance committees.
6. Positive Outcomes: Across democracies, higher parliamentary engagement and budget transparency lead to better social outcomes and economic stability. Examples include active legislative roles in budget processes in countries like the U.S., Australia, Canada, and the U.K.

Current State of India’s Parliamentary Involvement:

1. Executive Dominance: The Finance Ministry primarily drafts the budget, excluding even Cabinet Ministers from the process until its presentation in the Lok Sabha.
2. Lack of Legislative Scrutiny: Unlike other legislative bills, the budget proposal bypasses in-depth cabinet discussions, limiting Parliament’s role to superficial scrutiny.
3. Minimal Debate Quality: The dominance of the executive results in fragmented debates and limited oversight in Parliament, weakening the core principles of democracy.
4. Ceremonial Role of Rajya Sabha: Despite its democratic credentials, the Rajya Sabha has no significant role in budget discussions, mirroring a lack of bicameral influence in budgetary matters.
5. Passive Legislative Role: Legislators have minimal power to amend or influence budget proposals, reducing their role to merely approving the government’s financial plans.

Consequences of Limited Parliamentary Role:

1. Ineffective Oversight: Parliament has little role in making the budget. This leads to weak checking of government spending and policies. The executive takes decisions without proper control.
2. Reduced Accountability: The executive controls the budget process. Parliament cannot question or correct it. This increases the risk of misuse of public money.
3. Democratic Deficits: Parliament’s small role weakens democracy. There is less public and legislative checking of financial decisions. This is not the case in stronger democracies.

Reforms for Enhanced Parliamentary Role:

1. Pre-Budget Discussions: Institutionalise a 5–7 day discussion during the monsoon session. It will help legislators assess fiscal health and suggest budget priorities. This will also improve coordination among subject committees and ensure public concerns are raised early.
2. Parliamentary Budget Office (PBO): Create an independent office to provide MPs with data-based analysis. Model it on the U.S. Congressional Budget Office or similar bodies in the UK, Canada, and Australia. A PBO can offer policy briefs, forecast trends, and assess the fiscal impact of government policies, boosting informed and accountable decision-making.

Conclusion

Many parliaments shape budgets actively, but India’s role remains weak. The executive controls the process, limiting legislative input. This reduces transparency and accountability. Stronger parliamentary involvement, like in the U.S. or U.K., leads to better outcomes. India needs reforms to fix this imbalance.

Question for practice:

Examine the reasons for the limited role of India’s Parliament in the budget-making process and suggest reforms to strengthen its involvement.