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.
Because of the interest in the Women’s Reservation Bill and the Civil Liability for Nuclear Damage Bill, we’ve received a number of queries about the process by which a bill becomes an Act. We have a more comprehensive primer on the subject, but here’s the process in brief: •The ministry drafts a text of the proposed law, which is called a ‘Bill’, after calling comments from other ministries, and even from the public. The draft is revised to incorporate such inputs and is then vetted by the Law Ministry. It is then presented to the Cabinet for approval. •After the Cabinet approves the Bill, it is introduced in Parliament. In Parliament, it goes through three Readings in both Houses. • During the First Reading the Bill is introduced. The introduction of a Bill may be opposed and the matter may be put to a vote in the House. •After a Bill has been introduced, the Bill may be referred to the concerned Departmentally Related Standing Committee for examination. •The Standing Committee considers the broad objectives and the specific clauses of the Bill referred to it and may invite public comments on a Bill. It then submits its recommendations in the form of a report to Parliament. •In the Second Reading (Consideration), the Bill is scrutinized thoroughly. Each clause of the Bill is discussed and may be accepted, amended or rejected. The government, or any MP, may introduce amendments to the Bill. However, the government is not bound to accept the Committee’s recommendations. •During the Third Reading (Passing), the House votes on the redrafted Bill. •If the Bill is passed in one House, it is then sent to the other House, where it goes through the second and third readings. •After both Houses of Parliament pass a Bill, it is presented to the President for assent. He/She has the right to seek information and clarification about the Bill, and may return it to Parliament for reconsideration. (If both Houses pass the Bill again, the President has to assent) • After the President gives assent, the Bill is notified as an Act.
