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.
Latest in the string of litigations filed after the enactment of the Right of Children to Free and Compulsory Education Act, 2009 (RTE Act), the Delhi High Court ruled that the Act shall not apply to nursery admissions in unaided private schools for the unreserved category of students. The decision, given on February 19, was in response to writ petitions filed by Social Jurist, a civil rights group and the Delhi Commission for the Protection of Child Rights. It contended that the guidelines of the Ministry of Human Resource Development related to schools’ selection procedure should also be applicable to pre-primary and pre-school classes. The right to education is applicable to children between the age of 6 and 14 years. The RTE Act states that schools have to reserve certain proportion of their seats for disadvantaged groups. It adds that where the school admits children at pre-primary level, the reservation for children of weaker sections shall apply. However, it does not mention whether other RTE norms are applicable to pre-schools. It only states that the appropriate government may make necessary arrangements for providing pre-school education to children between the age of 3 and 6 years. Guidelines of the Ministry with regard to selection procedure of students:
The two issues that the court considered were: (a) whether RTE applies to pre-schools including nursery schools and for education of children below six years of age; (b) whether RTE applies to the admission of children in pre-schools in respect of the unreserved seats (25% of seats are reserved for children belonging to disadvantaged groups). According to the verdict, the guidelines issued by the government do not apply to the unreserved category of students i.e. 75% of the admission made in pre-schools in private unaided schools. This implies that private unaided schools may formulate their own policies regarding admission in pre-schools for the unreserved category of students. However, they apply to the reserved category of students i.e. 25% of the admission s made in these schools for disadvantaged groups. The court has however stated that in its view this is the right time for the government to consider the applicability of RTE Act to the nursery classes too. In most schools, students are admitted from nursery and they continue in the same school thereafter. Therefore, the RTE Act’s prohibition of screening at the time of selection is rendered meaningless if it is not applicable at the nursery level.
