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Posts Tagged ‘PAC v JPC’

Can Joint Parliamentary Committee (JPC) summon ministers?

December 21st, 2010 No comments

One of our earlier posts (read here) tackled the question of whether the Public Accounts Committee could summon ministers or not. According to a direction of the speaker, a Minister cannot be summoned by a financial committee.

There are no specific procedures for the Joint Parliamentary Committees mentioned in the rules. However, according to the Directions by the Speaker general rules applicable to Committees shall apply to all Committees, though specific directions can be given for some committees (read here).  In other words, the general directions for all committees would be the same, unless a specific direction was given relating to a particular committee.

In the Joint Committee of Stock Market Scam and Matters relating there to, a specific request was made to the Speaker, Lok Sabha by the Chairman, JPC on 20th May, 2002 for permitting the Committee to call for written information on certain points from the Minister of Finance and Minister of External Affairs. The Speaker accorded the necessary permission on 1st June, 2002.

Consequently, the Minister of Finance (Shri Jaswant Singh), the Minister of External Affairs (Shri Yashwant Sinha) and the former Finance and External Affairs ministers (Shri P. Chidambaram and Dr. Manmohan Singh respectively) testified before the Committee. Read the text of the report here.

How many reports has PAC tabled since 1952?

December 20th, 2010 1 comment
Around 1400 reports have been tabled by the PAC since the first Lok Sabha till end of 14th Lok Sabha.

In terms of absolute numbers, the largest number of reports were tabled during the 5th Lok Sabha (1971-77).  However, in terms of the average number of reports presented in the duration of a single Lok Sabha, the 6th Lok Sabha is the highest.

The fewest number of PAC reports were tabled during the 1st Lok Sabha (25 reports over all and 5 reports on an average per year).



Parliament’s scrutiny over government finances

December 20th, 2010 No comments

The recent 2G-controversy and the related debate over the role of the PAC as opposed to the JPC also raises a broader Issue regarding the general scrutiny of government finances by Parliament.  Oversight of the government’s finances involves the scrutiny of the government’s financial proposals and policies.  The Indian Constitution vests this power with the Parliament by providing that (a) taxes cannot be imposed or collected without the authority of law, and (b) expenditure cannot be incurred without the authorisation of the legislature.

The Indian Parliament exercises financial oversight over the government budget in two stages: (1) at the time of presentation of the annual budget, and (2) reviewing the government’s budget implementation efforts through the year.

The Parliament scrutinises the annual budget (a) on the floor of the House, and (b) by the departmentally related standing committees.

Scrutiny on the floor of the House

The main scrutiny of the budget in the Lok Sabha takes place through:

(a) General discussion and voting: The general discussion on the Budget is held on a day subsequent to the presentation of the Budget by the Finance Minister.  Discussion at this stage is confined to the general examination of the Budget and policies of taxation expressed during the budget speech.

(b) Discussion on Demand for Grants: The general discussion is followed by a discussion on the Demand for Grants of different ministries. A certain number of days or hours are allocated for the discussion of all the demands. However, not all the demands are discussed within the allotted number of days.

The remaining undiscussed demands are disposed of by the Speaker after the agreement of the House.  This process is known as the ‘Guillotine’.  Figure 1 shows the number of Demands discussed and guillotined over the last five years.  It shows that nearly 90% of the Demands are not discussed every year.

Some Important Budget Documents

Annual Financial Statement – Statement of the estimated receipts and expenditure of the government.

Demand for Grants –Expenditure required to be voted by the Lok Sabha.  A separate Demand is required to be presented for each department of the government.

Supplementary Demand for Grants – Presented when (a) authorized amounts are insufficient, or (b) need for additional expenditure has arisen.

Finance Bill – Details the imposition of taxes, the rates of taxation, and its regulation.

Detailed Demand for Grants – Prepared on the basis of the Demand for Grants.  These show further break-up of objects by expenditure, and also actual expenditure in the previous year.

For more details see detailed note on Financial Oversight by Parliament here.

How many times has the PAC met since 2002?

December 15th, 2010 1 comment

Between 2002-06 the average number of sitting per year (May – April) was around 19 but since 2006 the average has dipped to around 11 sittings per year. The average number of committee sittings is around 15 per year from 2002-10. The committee met 22 times in 2002-03 while it only met 5 times in 2007-08.

The average duration per sitting has been more or less equal since 2002. The committee has been spending 1 hour 20 minutes on an average on each sitting.

* Data rounded off to nearest hour

* Data calculated from May to April every year.

* Data taken from the Public Accounts Committee Website & PRS.