The budget process is covered by live TV and extensively by most newspapers each year.  Most large companies have their own analysis of the budget.  Increasingly, there is an effort by civil society groups to analyse the budget to decipher the allocations to the social sector.  All of this is hugely important and indeed necessary for greater scrutiny and analysis by citizens across the country.

But we at PRS have often spoken about the role of Parliament in effectively scrutinising the government.  If there is anything that the Parliament must scrutinise carefully each year, it is the budget – because this is the way in which the government expresses its real priorities.  Even if the Parliament passes Bills on any subject – right to education, right to health, right to food, etc. – a good measure of the true willingness of the government to implement any of this can be seen by how much money it is willing to allocate to make things a reality.

Former Finance Minister Yashwant Sinha spoke about the budget process (Times of India, Feb 27th) and has argued that the current process in India is archaic and is in urgent need of an overhaul.  He also points that Parliament has little power to change anything in the budget, and argues that this undermines the principles of our Parliamentary democracy.  We agree.

On our part, we have produced two documents to help readers understand the budget process better.  How to read the union budget and the Union Budget process can both be accessed from our website.  And we would greatly appreciate your comments on this and other posts on our blog.

Parliament is considering a proposal to change the process of appointment of judges to the Supreme Court and High Courts.  A Constitutional Amendment Bill has been introduced in Rajya Sabha that enables the formation of a Judicial Appointments Committee (JAC), and states that the composition and functions of the JAC will be detailed in a law enacted by Parliament.  The appointments will be made according to the recommendations of the JAC.  This body replaces the current process of “consultation” with the Chief Justice of India (CJI) and other senior judges. An ordinary Bill has also been introduced in Rajya Sabha which seeks to establish the JAC.  The composition of the JAC will be the CJI, the next two judges of the Supreme Court in terms of seniority, the law minister and two eminent persons.  These two eminent persons will be selected by a collegium consisting of the CJI, the prime minister and the leader of opposition in the Lok Sabha.  In case of High Court Judges, the JAC will consult with the chief minister, the governor of the state and the Chief Justice of the High Court. The new system is widening the selection committee.  It includes representatives of the executive and senior judiciary, as well as two persons who are jointly selected by the executive (PM), judiciary (CJI), and the legislature (leader of opposition). However, it may be diluting some of the safeguards in the Constitution.  At a later date, the composition of the JAC can be amended by ordinary majority in Parliament.  [For example, they can drop the judicial members.]  This is a significantly lower bar than the current system which requires a change to the Constitution, i.e., have the support of two thirds of members of each House of Parliament, and half the state assemblies. The 120th Constitution Amendment Bill and the JAC Bill are listed for consideration and passing in Rajya Sabha today.  Given that these Bills propose fundamental changes to the process of appointments to key constitutional bodies, it is important that there be a wide debate.  The Rajya Sabha must refer these Bills to the Standing Committee for careful examination of various issues. I have written a piece on this issue in the Indian Express today.