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Control over Budget: Effectiveness of Parliament

March 25th, 2010 2 comments

During the recess, the Departmentally Related Standing Committees of Parliament examine the Demand for Grants submitted by various Ministries.  The Demand for Grants are detailed explanations of that Ministry’s annual budget which form part of the total budget of the government.  These are examined in detail, and the committees can approve of the demands, or suggest changes.  The Demand for Grants are finally discussed and voted on by the Parliament after the recess.  (The post below lists the ministries whose Demand for Grants will be discussed in detail after the recess).

The issue is – how effective is the institution of Parliament in examining the budget?  Though India specific information on this subject is hard to find, K. Barraclough and B. Dorotinsky have cited the World Bank – OECD Budget procedures Database to formulate a table on the legislature approving the budget presented by the executive (“The Role of the Legislature in the Budget Process: A Comparative Review“, Legislative Oversight and Budgeting).  I reproduce the table below:



In Practice, does the legislature generally approve the budget as presented by the Executive? (in percent)
Answer All Countries OECD Countries Presidential democracies Parliamentary democracies
It generally approves the budget with no changes 34 33 14 41
Minor changes are made (affecting less than 3% of total spending) 63 67 71 59
Major changes are made (affecting more than 3% but less than 20% of total spending) 2 0 7 0
The budget approved is significantly different (affecting more than 20% of total spending) 0 0 0 0
Sources:  K. Barraclough and B. Dorotinsky; PRS.