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.
The Seeds Bill was introduced in 2004, and is listed for discussion in Rajya Sabha this week. We had flagged some issues in our Legislative Brief. The Standing Committee had also made some recommendations (summary available here). These included the following: Farmers selling seeds had to meet the same quality requirements (on physical and genetic purity, minimum level of germination etc.) as seed companies. Second, seed inspectors had the power to enter and search without a warrant, unlike the requirements in the Criminal Procedure Code for the police. Third, the compensation mechanism for farmers was through consumer courts; some other Acts provide separate bodies to settle similar issues. The government has circulated a list of official amendments. These address most of the issues (tabulated here). One significant issue has not been addressed. The financial memorandum estimates that Rs 36 lakh would be required for the implementation of the Act during 2004-05 from the Consolidated Fund of India. The amount required by state governments to establish testing laboratories and appointing seed analysts and seed inspectors has not been estimated, which implies that the successful implementation of the bill will depend on adequate provision in state budgets.
