Authored by Vishnu Padmanabhan and Priya Soman The Budget speech may have already been scrutinised and the numbers analysed but the Budget process is far from complete.  The Constitution requires expenditure from the government’s Consolidated Fund of India to be approved by the Lok Sabha (the Rajya Sabha does not vote, but can suggest changes). After the Finance Minister presents the Union Budget, Parliament holds a general discussion followed by a detailed discussion and vote on Demands for Grants. In the general discussion, the House discusses the Budget as a whole but no motions can be moved and no voting takes place.  In the 15th Lok Sabha, the average time spent during the Budget Session on general discussion has been 13 hours 20 minutes so far. Following the general discussion, Parliament breaks for recess while Demands for Grants – the projected expenditure by different ministries - are examined by the relevant Standing Committees of Parliament. This year Parliament is scheduled to break for a month from March 22nd to April 22nd. After the break, the Standing Committees table their reports; the grants are discussed in detail and voted on.  Last year, the total time spent on the Union Budget, on both general and detailed discussion was around 32 hours (or 18% of total time in the session), largely in line with the average time spent over the last 10 years (33 hours, 20% of total time). A unique feature of Indian democracy is the separate presentation and discussion for the Railway Budget.  Including the Railway Budget the overall time spent on budget discussion last year was around 55 hours (30% of total time in the session).

Note: All data from Budget sessions; data from 2004 and 2009 include interim budget sessions. Source: Lok Sabha Resume of Work, PRS

 

During the detailed discussion, MPs can call for ‘cut motions’ to reduce the amounts of demands for grants made by a Ministry. This motion can be tabled in three ways: (i) ‘the amount of the demand be reduced to Re.1/’ signifying disapproval of the policies of that ministry; (ii)  ‘the amount of the demand be reduced by a specified amount’, an economy cut signifying a disapproval of the amount spent by the ministry  and (iii) ‘the amount of the demand be reduced by Rs.100/-', a token cut airing a specific grievance within the policy of the government. However in practice almost all demands for grants are clubbed and voted together (a process called guillotining). In 2012, 92% of demands for grants were guillotined. The grants for Ministries of Commerce and Industry, Health and Family Welfare, Home Affairs and Urban Development were the only grants taken up for discussion. Over the last 10 years, 85% of demands for grants have been voted for without discussion. The most frequently discussed demand for grants come from the Ministry of Home Affairs (discussed in 6 of the last 10 sessions) and the Ministry of Rural Development (5 times).  Demand for grants for Defence, the largest spending Ministry, has only been voted after discussion once in the last 10 years.

Source: Lok Sabha Resume of Work, Union Budget documents, PRS

 

If the government needs to spend any additional money, it can introduce Supplementary Demands for Grants during the year.  However if after the financial year government spending on a service exceeds the amount granted, then an Excess Demand for Grant has to be introduced and passed in the following year.  The Budget process concludes with the introduction and passage of the Appropriation Bill authorising the government to spend money from the Consolidated Fund of India. In addition, a Finance Bill, containing the taxation proposals of the government is considered and passed by the Lok Sabha after the Demands for Grants have been voted upon.

The Protection of Women against Sexual Harassment Bill was passed by Rajya Sabha yesterday.  Prior to this, no legislation specifically addressed the issue of sexual harassment at the workplace.  In 1997, the Supreme Court issued directions in Vishakha vs. State of Rajasthan to deal with the issue.  The Supreme Court had also recommended that steps be taken to enact a law on the subject.  The Bill was introduced in Parliament in 2010 and was passed by the Lok Sabha on September 3, 2012.  In order to protect women from harassment, the Bill establishes a mechanism for redressal of complaints related to harassment. Recently, the Verma Committee in its Report on Amendments to Criminal Laws had made recommendations on the Sexual Harassment Bill.  In this blog we discuss some of the key issues raised by the Verma Committee with regard to the issue of sexual harassment at the workplace. Internal Committee:  The Bill requires the establishment of a committee within organisations to inquire into complaints of sexual harassment.  The Committee shall comprise four members: three would be employees of the organisation; and the fourth, a member of an NGO committed to the cause of women.  The Verma Committee was of the opinion that in-house dealing of the complaints would dissuade women from filing complaints.  It recommended that a separate Employment Tribunal outside the organisation be established to receive and address complaints of sexual harassment. Requirement for conciliation:  Once a complaint is made, the Bill requires the complainant to attempt conciliation and settle the matter.  Only in the event a settlement cannot be reached, the internal committee of the organisation would inquire into the matter.  The Verma Committee was of the opinion that this is in violation of the Supreme Court’s judgment.  It noted that in sexual harassment cases, an attempt to conciliate compromises the dignity of the woman. Action during pendency of the case:  As per the Bill, a woman may approach the internal committee to seek a transfer for herself or the respondent or a leave to the complainant.  The Verma Committee had recommended that till the disposal of the case, the complainant and the respondent should not be compelled to work together. False complaints: The Bill allows the employer to penalise false or malicious complaints as per their service rules.  The Committee was of the opinion that this provision was open to abuse. A PRS analysis of the Bill may be accessed here.