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.

In April last year the government had notified the Information Technology (Intermediary Guidelines) Rules, 2011  (IT Rules) under the Information Technology Act, 2000.  The IT Rules are listed for discussion in Rajya Sabha today in pursuance of a motion moved by Mr.  P. Rajeeve [CPI(M)].  The motion seeks to annul these Rules and recommends that Lok Sabha also concur with the motion. The IT Rules require intermediaries (internet service providers, blogging sites like Blogger and Wordpress, and cyber cafés) to take certain action.  Intermediaries are required to enter into agreements with their users prohibiting publication of certain content.  Content that cannot be published includes anything that is ‘harmful to minors in any way’, ‘blasphemous’, ‘encouraging money laundering’ etc.  This raises three issues. Some of the categories of content prohibited for publication are ambiguous and undefined.  For instance, ‘grossly harmful’ and ‘blasphemous’ content are not defined. Publication of certain content prohibited under the IT Rules, is currently not an offences under other laws.  Their publication is in fact allowed in other forms of media, such as newspapers.  Newspapers are bound by Press Council Norms.  These Norms do not prohibit publication of all the content specified under the IT Rules.  For instance, while these Norms require newspapers to show respect to all religions and their gods, they do not prohibit publication of blasphemy.  However, under the IT Rules blasphemy is prohibited.  This might lead to a situation, where articles that may be published in newspapers legally, may not be reproduced on the internet for example in the e-paper or on the newspaper’s website. Prohibition of publication of certain content under the IT Rules may also violate the right to freedom of speech.  Under Article 19(2) of the Constitution restrictions on the right to freedom of speech may be imposed in the interest of the State’s sovereignty, integrity, security and friendly relations with other States, public order, morality, decency, contempt of court, and for protection against defamation.  The content prohibited under the IT Rules may not meet the requirement of Article 19(2).  This may impinge on the right to freedom of speech and expression. Further, anyone can complain against such content to the intermediary.  The intermediary is required to remove content if it falls within the description specified in the IT Rules.  In the event the intermediary decides not to remove the content, it may be held liable.   This could lead to a situation where, in order to minimise the risk of liability, the intermediary may block more content than it is required.  This may imply adverse consequences for freedom of expression on the internet. PRS’s detailed analysis of the IT Rules may be accessed here.