FINANCIAL ADMINISTRATION IN

• Subject code : 18BPA53C

• Prepared By : DR. P.MAGUDAPATHY

Asst.professor

• Department : PG & Research Department of Public

Administration

• Contact No. : 9994672379

The content is prepared according to the text book and reference book given in the syllabus. Year Subject Title Sem. Sub Code

2018 -19 Core 8: Financial Administration in India V 18BPA53C Onwards

UNIT – I: INTRODUCTION

Nature, Scope and Significance of Public Financial Administration – Meaning- Principle and types Budget – Modern Techniques of Public Financial Administration.

UNIT – II: BUDGETARY PROCESS AND PUBLIC BUDGETING IN INDIA

Aspects of Indian Budgetary system – Preparation and Enactment of Budget – Execution of Budget - Control Over Public Expenditure in India – Finance Ministry.

UNIT – III: FINANCIAL COMMITTEES OF PARLIAMENT

Public Accounts Committee – Estimate Committee – Committee on Public Undertakings – Committee on Subordinate Legislation - Standing Committees of Departments.

UNIT – IV: ACCOUNTING AND AUDITING

Meaning of Accounting and Auditing- Types of Accounts and Audit- Audit in India – Comptroller and Auditor General of India – Separation of Accounts from Audit.

UNIT – V: PUBLIC FINANCE AND FINANCIAL RELATIONS

Finance Commission of India – Union - State Financial Relations– Resource Mobilization – Tax Administration in India – Public Debt Administration in India – Local Finances in India – State Finance Commission.

Reference Books

1. Sarapa.A. Public Finance In India, Kanishka Publishers, Distributros, New Delhi,2004.

2. R.Duff And K.P. Sundharam, Indian Economy, S.CDhand&Company,New Delhi,2004.

3. Goel.S.L, Public Financial Administration, Deep & Deep Publishers,New Delhi,2004

4. M.Lamikanth, Public administration, McGraw Hill publishers, New delhi, 2013. FINANCIAL ADMINISTRATION IN INDIA

Degree: III B.A. Subject Code: 18BPA53C

Semester: V

Unit – III

FINANCIAL COMMITTEES OF PARLIAMENT PUBLIC ACCOUNTS COMMITTEE:

The Public Accounts Committee (PAC) is a committee of selected members of parliament, constituted by the , for the purpose of auditing the revenue and the expenditure of the . They check that parliament exercises over the executive stems from the basic principle that parliament embodies the will of the people. This committee along with the (EC) and Committee on Public Undertakings (COPU) are the three financial standing committees of the Parliament of India. It serves as a check on the government especially with respect to its expenditure bill and its primary function is to examine the audit report of Comptroller and Auditor General (C&AG) after it is laid in the Parliament. C&AG assists the committee during the course of investigation. None of its members are allowed to be ministers in the government. The main function of the committee is to ascertain whether the money granted by parliament has been spent by government within the scope of the demand. The Public Accounts Committee consists of not more than twenty-two members, fifteen elected by , the lower house of the Parliament, and not more than seven members of , the upper house of the Parliament. The members are elected every year from amongst its members of respective houses according to the principle of proportional representation by means of single transferable vote. The chairperson is appointed by the Lok Sabha speaker. The term of office of the members is one year.

The Public Accounts Committee (PAC) is a committee of selected members of parliament, constituted by the Parliament of India, for the purpose of auditing the revenue and the expenditure of the Government of India. They check that parliament exercises over the executive stems from the basic principle that parliament embodies the will of the people. This committee along with the Estimates committee (EC) and Committee on Public Undertakings (COPU) are the three financial standing committees of the Parliament of India.

It serves as a check on the government especially with respect to its expenditure bill and its primary function is to examine the audit report of Comptroller and Auditor General (C&AG) after it is laid in the Parliament. C&AG assists the committee during the course of investigation. None of its members are allowed to be ministers in the government. The main function of the committee is to ascertain whether the money granted by parliament has been spent by government within the scope of the demand.

The Public Accounts Committee consists of not more than twenty-two members, fifteen elected by Lok Sabha, the lower house of the Parliament, and not more than seven members of Rajya Sabha, the upper house of the Parliament. The members are elected every year from amongst its members of respective houses according to the principle of proportional representation by means of single transferable vote. The chairperson is appointed by the Lok Sabha speaker. The term of office of the members is one year.

At present, the has no designated leader of opposition,[1] however the (INC) being largest opposition party has gotten the responsibility of heading the PAC. The current PAC is headed by Adhir Ranjan Chowdhury since July, 2019 after , who was leader of INC in the Lok Sabha. He was re-appointed to a second term in May 2018.

The committee was first conceived in the year 1921 in the wake of Montagu- Chelmsford Reforms. During the initial days of British colonial government in India, the finance member of the executive council was the chairperson of the committee. Post independence, till 1950 the chairperson of the committee was the finance minister. However, in 1950, the country became republic and the committee became a parliamentary committee functioning under the control of the Speaker of Lok Sabha with a non-official chairperson. From 1950 to 1967, the chairperson was selected from the ruling party. Since 1967, the chairperson of the committee is selected from the opposition, usually the leader of opposition.[3]

Prior to the year 1954–55, the committee consisted of 15 members who were elected by Lok Sabha from amongst its members. But with effect from the year 1954–55, 7 members from the Rajya Sabha have also been elected to the committee.

As stated earlier, the primary function of the PAC is to examine the audit report of Comptroller and Auditor General after it is laid in the Parliament. The audit by the is comprehensive and manifold. It involves among others, (a) accountancy audit, (b) regularity audit, (c) appropriation audit,

(d) discretionary audit and (e) efficiency-cum-performance audit.

At the beginning of its term every year, the committee makes a selection of audit paragraphs included in the various reports of C&AG for in-depth examination. After holding deliberations and taking note of the time available at its disposal, the committee selects the most important paragraphs from the audit reports for detailed examination and submits its reports to the House on them.

Standing Order 82 states “there shall be a Standing Committee to be known as the Public Accounts Committee to consist of not less than six or more than ten Members to be nominated by the Committee of Selection as soon as may be after the beginning of each National Assembly.”

“The Chairperson of the Public Accounts Committee must be a Member of the main Opposition in the National Assembly.” Functions of the Public Accounts Committee To examine the accounts approved by the National Assembly for the expenditure of the Government of Guyana and such other accounts laid before the National Assembly as the National Assembly may refer to it; General supervision over the functioning of the Office of the Auditor General in accordance with the Rules, Policies and Procedures Manual and any other law; and Nominate the members of the Public Procurement Commission for approval by the National Assembly and, thereafter, the appointment by the President; and to determine the emoluments and allowances of the Public Procurement Commission in consultation with the Commission. Roles of The Public Accounts Committee The Committee ensures compliance with Financial Regulations by Ministries/Divisions and Public Sector Organisations to maintain transparency and accountability; The Committee through examination of the Report of the Auditor General of Guyana summons Accounting Officers from the respective Ministries and Departments to investigate and enquire about the issues of Financial Irregularities; and The Public Accounts Committee is a watch dog for public sector spending. Oversight role of the Audit Office of Guyana  Article 223(5) of the Constitution of the Co-operative Republic of Guyana states “that the Public Accounts Committee may exercise general supervision over the functioning of the Office of the Auditor General in accordance with the Rules, Policies and Procedures Manual…” Audit Act 2004 Section 14(3)- “The Auditor General’s appointment and discipline of all senior officers and senior employees shall be subject to approval by the Public Accounts Committee”.All positions are advertised internally and externally, The Public Accounts Committee recommended that applicants for all Management positions be subjected to an oral interview and a written test; two positions have been filled thus far using this method; Based on the Public Accounts Committee’s recommendation the interview evaluation form used for Management positions was changed

Though the Public Accounts Committee (PAC) is quite often referred to as a post- mortem committee, it has a significant role, feel Hoshiar Singh and Pankaj Singh in ‘Indian Administration’ (www.pearsoned.co.in). The committee’s job of scrutinizing accounts is a continuous process and it enjoys the prerogative of looking at the present as well as the future, they reason. Urging that the very fact there is someone who will scrutinize what has been done is a great check on the slackness, or negligence of the executive, the authors argue that the examination, when properly carried out, leads to general efficiency of the administration, and also serves as a guide for both future estimates and policies.

The authors also remind that the committee has kept the executive accountable to Parliament, thereby lending an additional dimension to the nation’s fiscal policies and programmes. One learns that the committee has been able to bring to light certain cases where parliamentary authority on the administration of tax laws had been diluted by the executive fiat, and other cases of the government not carrying out the intentions of Parliament as expressed in laws. “It had also drawn attention to differing interpretations given by officers to tax provisions which had led to citizens being taxed differently under the same statute.”

Appalled that the PAC has been reduced to being a toothless watchdog, the authors aver that the fault lies at the door of the government. They fret that the politician in power and the acquiescent bureaucrat have together developed a vested interest for secrecy, shying away from accountability to Parliament and the people. “Governments have perfected the art of treating parliamentary committees as sinecures and their reports as documents to be consigned to the dust-gathering morgue of secretarial shelves. Ministers and bureaucrats are not inhibited by the thought that the PAC would be calling them in question for any profligacy on their part.

Functions

• PAC examines the three audit reports of CAG submitted to President viz. audit report on appropriation accounts, audit report on finance accounts and audit report on public undertakings.

• It examines the appropriation accounts and the finance accounts of the Union government and any other accounts laid before the Lok Sabha. While doing this examination, it tries to ensure that money disbursed to various ministries was used for the purpose for which it was given; and this money was used as per rules and regulations.

• It also examines the accounts of the public service corporations {except those public undertakings which have been allotted to committee on public undertakings}, and other such bodies whose accounts are audited by CAG. CAG assists PAC in its work and there is a close working relationship between CAG and PAC to secure the accountability of executive in the field of financial administration. This is the reason that CAG is called “Friend, Philosopher and Guide” of PAC.

imilarities between PAC and Estimates Committee

• Both are financial committees and both are standing committees of parliament

• Both find their origin in British Era

• Members of both are elected and chairmen of both are nominated by speaker.

• A minister cannot be member or chairman of any of them.

Differences between PAC and Estimates Committee

• While PAC has 22 members, Estimates Committee has 30 members.

• While PAC members belong to both houses of parliament, Estimates Committee members belong to only Lok Sabha • While PAC chairman is from opposition, Estimates Committee Chairman is always from ruling party or dispensation

• While Estimates committee scrutinizes the Estimates, PAC scrutinizes the appropriation and manner of spending. Thus, work of Estimates Committee is ex-ante analysis while that of PAC is ex post facto analysis

ESTIMATE COMMITTEE:

The Estimates Committee is a committee of selected members of parliament, constituted by the Parliament of India (the Lok Sabha), for the purpose of scrutinizing the functioning of government ministries and departments in terms of expenditure and utilization of funds. It also suggests alternative policies in order to bring about efficiency and economy in administration.

It also examines whether the finances are laid out within the limits of the policy implied in the estimates and also to suggest the form in which the estimates shall be presented to Parliament.[1] This committee along with the Public Accounts committee(PAC) and Committee on Public Undertakings (COPU) are the three financial standing committees of the Parliament of India. The committee consists of thirty members, all elected from Lok Sabha, the lower house of the Parliament of India. The members are elected every year from amongst its members of the Lok Sabha, according to the principle of proportional representation by means of single transferable vote. The chairperson is appointed by the Lok Sabha speaker. The term of office of the members is one year. A minister is not eligible to become a member of the committee. In case a member after his election to the committee becomes a minister, he or she ceases to be a member from the date of such appointment.

There are no members from Rajya Sabha.

The Estimates Committee is a committee of selected members of parliament, constituted by the Parliament of India (the Lok Sabha), for the purpose of scrutinising the functioning of government ministries and departments in terms of expenditure and utilisation of funds. It also suggests alternative policies in order to bring about efficiency and economy in administration. It also examines whether the finances are laid out within the limits of the policy implied in the estimates and also to suggest the form in which the estimates shall be presented to Parliament.[1] This committee along with the Public Accounts committee(PAC) and Committee on Public Undertakings (COPU) are the three financial standing committees of the Parliament of India.

The committee consists of thirty members, all elected from Lok Sabha, the lower house of the Parliament of India. The members are elected every year from amongst its members of the Lok Sabha, according to the principle of proportional representation by means of single transferable vote. The chairperson is appointed by the Lok Sabha speaker. The term of office of the members is one year. A minister is not eligible to become a member of the committee. In case a member after his election to the committee becomes a minister, he or she ceases to be a member from the date of such appointment. There are no members from Rajya Sabha Currently the committee is headed by from the Bharatiya

Although the committee existed pre-independence, post independence, it was established following directives by John Mathai. In his speech presenting the budget of 1950–51, Mathai outlined the role that had been envisaged, saying

As you, Sir, announced earlier in the session, we propose to ask the House to set up an Estimates Committee to scrutinize the expenditure of each Department of Government and of the Government as a whole. Personally I am looking forward to the work of the Estimates Committee when it is set up because I think in two directions it is going to exert a healthy influence upon the course of public expenditure. In the first place, the suggestions and criticisms which may be made by the Estimates Committee would, in my judgement, give a useful direction and guidance to the Government in the matter of regulating expenditure. Secondly I think the knowledge that the expenditure of Government and of the various Departments of Government would be examined in detail by an independent authority set up by the House would act as a deterrent to extravagance in public expenditure.

The functions of the committee as enshrined in Rule 310 of Rules of Procedure and Conduct of Business in Lok Sabha are:

• To report what economies, improvements in organisation, efficiency or administrative reform, consistent with the policy underlying the estimates may be effected

• To suggest alternative policies in order to bring about efficiency and economy in administration

• To examine whether the money is well laid out within the limits of the policy implied in the estimates

• To suggest the form in which the estimates shall be presented to Parliament.

The committee from time to time selects the estimates pertaining to a ministry or department of the central government or such of the statutory and other bodies of the central government as may seem fit to the committee. The committee also examines matters of special interest which may arise in the course of its work or which are specially referred to it by the house or by the speaker.[4] The committee calls for preliminary materials from the relevant bodies in regard to the subjects selected for examination and also comments from non-officials connected with the subjects for the use of the members of the committee.

The committee does not exercise its functions in relation to such public sector undertakings as are allotted to the Committee on Public Undertakings by the Rules of Procedure and Conduct of Business of Lok Sabha or by the speaker.

Estimates Committee is a Parliamentary Committee in India consisting of 30 members, elected every year by the lower chamber of the Parliament - Lok Sabha - from amongst its Members, to examine the budget estimates of the Union Government. Lok Sabha, the Estimates committee has powers to examine the Budget Estimates and (a) to report what economies, improvements in organisation, efficiency or administrative reform, consistent with the policy underlying the estimates, may be effected (b) to suggest alternative policies in order to bring about efficiency and economy in administration (c) to examine whether the money is well laid out within the limits of the policy implied in the estimates

(d) to suggest the form in which the estimates shall be presented to Parliament. Rule 312 states that the Committee may continue the examination of the estimates from time to time throughout the financial year and report to the House as its examination proceeds. It shall not be incumbent on the Committee to examine the entire estimates of any one year. The Demands for Grants may be finally voted notwithstanding the fact that the Committee has made no report.

The role meant to be played by the Estimates Committee was articulated by India’s first Finance Minister (Shir John Mathai), who in his Budget speech 1950-51 had said, .This Budget is being presented under the new Constitution. From that fact there are two matters that arise to which I would like to invite the attention of the House. The first is this,that the Constitution lays down a somewhat elaborate procedure for the consideration and discussion of the Budget. I would like to say, at this stage, that, as far as I am concerned, I would like the Standing Finance Committee to continue at the same time. There is a real distinction between the work of the Standing Finance Committee and the work of the proposed Estimates Committee. The Standing Finance Committee is concerned with specific proposals of expenditure by each Department of Government, but the Estimates Committee’s business would be to make a comprehensive examination of expenditure in relation to the resources available to Government. The real business of the Estimates Committee would, therefore, be taking the policy and the objectives of Government (with which they are not concerned) to suggest how this policy and these objectives could be carried out with the least expenditure of public resources. That, Sir, is the first matter to which I would like to refer as arising from the introduction of the Constitution.”

The Committee on Estimates was constituted for the first time in 1950. The present list of members may be seen here. The Chairperson of the Committee is appointed by the Lok Sabha Speaker from amongst its members. A Minister cannot be elected as a member of the Committee. The term of office of the Committee is one year. Committee can authorize sub-committees to look into specific issues.

Estimates Committee does not look into the working of the public sector undertakings for which a separate committee - Committee on Public Undertakings – is constituted.

Any change in the preparation of budget estimates would need the approval of the Estimates Committee. For instance, before firming up Budget 2016-17, the Department of Economic Affairs (DEA), Ministry of Finance had approached the Estimates Committee inter-alia for (a) approval to change Format of presenting Budget estimates; (b) to merge some Demands for Grants in Budget 2016-17 and (c) power to merge /demerge demand for grants in future without approaching the Estimates Committee. Estimates Committee, vide its report submitted to in January 2016, gave permission on but denied permission on

Other Functions Include (1) To report what economics, improvements in organisation, efficiency or administrative reform, consistent with the policies underlying the estimates may be effected. (2) To suggest alternative policies in order to bring about efficiency and economy in administration;

(3) To examine whether the money is well laid out within the limits of the policy implied in the estimates;

(4) To suggest the form in which the estimates can be presented to the parliament. (5) If the committee finds that a particular policy laid down by parliament is not leading to the expected or desired results or is leading to waste, it has a duty to bring it to the notice of the Lok Sabha that a change in policy is called for.

Working of the Committee The Committee is constituted in June and the work starts from July. The year plan is prepared by selecting such of the estimates as may seem fit to it. Then the office of the committee collects and collates the relevant materials.

It may constitute sub committees, each having the powers of the undivided committee, to examine any matters that may be referred to it, and the reports of such sub-committees are deemed to be the reports of the whole committee, if they are approved at a sitting of the whole committee.

A copy of the report will be submitted to the Lok Sabha. There is no formal debate on the reports of the Estimates Committee. The report contains three types of recommendations;

(1) For improving the organisation

(2) For securing the economy

(3) For providing guidance in the presentation of estimates. Evaluation of the Committee

The performance of the Estimates Committee is to the satisfaction of Lok Sabha. It is performing useful work in spotlighting the various acts of omission and commission of the government. In its various reports submitted from time to time, the committee suggested various reforms in financial as well as administrative systems.

The control exercised by the committee consists of

(1) It being judicial in approach (2) In representing the peoples’ approach

(3) In preventing the executive from being apprehensive

(4) In creating a training ground for the legislators

(5) In influencing the policies of government

(6) In acting as a link between the people and the government.

But of late, the Estimates Committees are bypassing their mandate by giving recommendations on the polices and on the structure of departmental organisation to the relevant exclusion of a detailed scrutiny of the estimates for which they are primarily meant.

But the Estimates Committee is performing a useful role in the Indian administrative system. It keeps the machinery of administration under parliamentary scrutiny, which is a very healthy feature. It acts as a standing committee on administrative improvement by highlighting the shortcomings and mistakes of public organisations. Its role is quite significant as the Government accepts almost all its recommendations. The functions of Parliament are not only varied in nature, but considerable in volume. The time at its disposal is limited. It cannot make very detailed scrutiny of all legislative and other matters that come up before it. A good deal of Parliamentary business is, therefore, transacted in the committees.

Both Houses of Parliament have a similar committee structure, with a few exceptions. Their appointment, terms of office, functions and procedure of conducting business are also more or less similar and are regulated as per rules made by the two Houses under Article 118(1) of the Constitution.

Broadly, Parliamentary Committees are of two kinds - Standing Committees and ad hoc Committees. The former are elected or appointed every year or periodically and their work goes on, more or less, on a continuous basis. The latter are appointed on an ad hoc basis as need arises and they cease to exist as soon as they complete the task assigned to them.

Standing Committees: Among the Standing Committees, the three Financial Committees - Committees on Estimates, Public Accounts and Public Undertakings - constitute a distinct group as they keep an unremitting vigil over Government expenditure and performance. While members of the Rajya Sabha are associated with Committees on Public Accounts and Public Undertakings, the members of the Committee on Estimates are drawn entirely from the Lok Sabha.

The Estimates Committee reports on 'what economies, improvements in organisation, efficiency or administrative reform consistent with policy underlying the estimates' may be effected. It also examines whether the money is well laid out within limits of the policy implied in the estimates and suggests the form in which estimates shall be presented to Parliament. The Public Accounts Committee scrutinises appropriation and finance accounts of Government and reports of the Comptroller and Auditor-General. It ensures that public money is spent in accordance with Parliament's decision and calls attention to cases of waste, extravagance, loss or nugatory expenditure. The Committee on Public Undertakings examines reports of the Comptroller and Auditor-General, if any. It also examines whether public undertakings are being run efficiently and managed in accordance with sound business principles and prudent commercial practices.

Besides these three Financial Committees, the Rules Committee of the Lok Sabha recommended setting-up of 17 Department Related Standing Committees (DRSCs). Accordingly, 17 Department Related Standing Committees were set up on 8 April 1993. In July 2004, rules were amended to provide for the constitution of seven more such committees, thus raising the number of DRSCs from 17 to 24. The functions of these Committees are: To consider the Demands for Grants of various Ministries/Departments of Government of India and make reports to the Houses; • To examine such Bills as are referred to the Committee by the Chairman, Rajya Sabha or the Speaker, Lok Sabha, as the case may be, and make reports thereon;

• To consider Annual Reports of ministries/departments and make reports thereon; and

• To consider policy documents presented to the Houses, if referred to the Committee by the Chairman, Rajya Sabha or the Speaker, Lok Sabha, as the case may be, and make reports thereon. divided in terms of their functions:

• Committees to Inquire: o Committee on Petitions examines petitions on bills and on matters of general public interest and also entertains representations on matters concerning subjects in the Union List; and o Committee of Privileges examines any question of privilege referred to it by the House or Speaker/Chairman;

• Committees to Scrutinise: o Committee on Government Assurances keeps track of all the assurances, promises, undertakings, etc., given by Ministers in the House and pursues them till they are implemented; o Committee on Subordinate Legislation scrutinises and reports to the House whether the power to make regulations, rules, sub-rules, bye-laws, etc., conferred by the Constitution or Statutes is being properly exercised by the delegated authorities; and o Committee on Papers Laid on the Table examines all papers laid on the table of the House by Ministers, other than statutory notifications and orders which come within the purview of the Committee on Subordinate Legislation, to see whether there has been compliance with the provisions of the Constitution, Act, rule or regulation under which the paper has been laid;

• Committees relating to the day-today business of the House: o Business Advisory Committee recommends allocation of time for items of Government and other business to be brought before the Houses; o Committee on Private Members’ Bills and Resolutions of the Lok Sabha classifies and allocates time to Bills introduced by private members, recommends allocation of time for discussion on private members’ resolutions and examines Constitution amendment bills before their introduction by private members in the Lok Sabha. The Rajya Sabha does not have such a committee. It is the Business Advisory Committee of that House which recommends allocation of time for discussion on stage or stages of private members’ bills and resolutions; o Rules Committee considers matters of procedure and conduct of business in the House and recommends amendments or additions to the Rules; and o Committee on Absence of Members from the Sittings of the House of the Lok Sabha considers all applications from members for leave or absence from sittings of the House. There is no such Committee in the Rajya Sabha. Applications from members for leave or absence are considered by the House itself;

• Committee on the Welfare of Scheduled Castes and Scheduled Tribes, on which members from both Houses serve, considers all matters relating to the welfare of Scheduled Castes and Scheduled Tribes which come within the purview of the Union Government and keeps a watch whether constitutional safeguards in respect of these classes are properly implemented;

• Committees concerned with the provision of facilities to members: o General Purposes Committee considers and advises Speaker/Chairman on matters concerning affairs of the House, which do not appropriately fall within the purview of any other Parliamentary Committee; and o House Committee deals with residential accommodation and other amenities for members;

• Joint Committee on Salaries and Allowances of Members of Parliament, constituted under the Salary, Allowances and Pension of Members of Parliament Act, 1954, apart from framing rules for regulating payment of salary, allowances and pension to Members of Parliament, also frames rules in respect of amenities like medical, housing, telephone, postal, constituency and secretarial facility; • Joint Committee on Offices of Profit examines the composition and character of committees and other bodies appointed by the Central and State governments and Union Territories Administrations and recommends what offices ought to or ought not to disqualify a person from being chosen as a member of either House of Parliament;

• The Library Committee consisting of members from both Houses, considers matters concerning the Library of Parliament;

• On 29 April 1997, a Committee on Empowerment of Women with members from both the Houses was constituted with a view to securing, among other things, status, dignity and equality for women in all fields;

• On 4 March 1997, the Ethics Committee of the Rajya Sabha was constituted. The Ethics Committee of the Lok Sabha was constituted on 16 May 2000. COMMITTEE ON PUBLIC UNDERTAKINGS: The Committee on Public Undertakings (COPU) is a committee of selected members of parliament, constituted by the Parliament of India, for the purpose of examining the reports and accounts of the public sector undertakings (PSUs) as specified in the fourth schedule of the Rules of Procedure and Conduct of Business in Lok Sabha. This committee along with the Public Accounts committee (PAC) and the Estimates committee (EC) are the three financial standing committees of the Parliament of India. The committee consists of twentytwo members, fifteen elected by Lok Sabha, the lower house of the Parliament, and not more than seven members of Rajya Sabha, the upper house of the Parliament. The members are elected every year from amongst its members of respective houses according to the principle of proportional representation by means of single transferable vote. The chairperson is appointed by the Lok Sabha speaker. The term of office of the members is one year. A minister is not eligible to become a member of the committee. If a member after his election to the committee becomes a Minister, he ceases to be a member from the date of such appointment. The Committee on Public Undertakings (COPU) is a committee of selected members of parliament, constituted by the Parliament of India, for the purpose of examining the reports and accounts of the public sector undertakings (PSUs) as specified in the fourth schedule of the Rules of Procedure and Conduct of Business in Lok Sabha. This committee along with the Public Accounts committee (PAC) and the Estimates committee (EC) are the three financial standing committees of the Parliament of India.

The committee consists of twenty-two members, fifteen elected by Lok Sabha, the lower house of the Parliament, and not more than seven members of Rajya Sabha, the upper house of the Parliament. The members are elected every year from amongst its members of respective houses according to the principle of proportional representation by means of single transferable vote. The chairperson is appointed by the Lok Sabha speaker. The term of office of the members is one year. A minister is not eligible to become a member of the committee. If a member after his election to the committee becomes a Minister, he ceases to be a member from the date of such appointment. The first proposal for a separate committee had been raised by Lanka Sundaram in 1953, stating the inadequacies Public Accounts committee (PAC) and the Estimates committee (EC) with respect to public undertakings, but the then finance minister did not relent to that idea. In May 1956. Ashok Mehta also proposed that there should be a separate committee for public undertakings, however the then finance minister held the view that the PAC and the EC were sufficient to handle the work load. By 1957, the government had agreed to form a standing sub-committee of the EC on public undertakings. In 1958, the congress formed the V. K. Krishna Menon committee. which put forward a number of recommendations intended to reconcile the accountability of public undertakings to parliament while keeping their autonomy on one hand and also ensuring efficiency on the other.[2]

In the September of 1963, the then Minister of Commerce and Industry Nityanand Kanungo, put forward a motion in the Lok Sabha proposing the formation of a separate Parliamentary Committee on Public Undertakings. In pursuance of this motion the Committee on Public Undertakings was formed with effect from May 1, 1964. The functions of the Committee on Public Undertakings are

• To examine the reports and accounts of public undertakings specified in the fourth Schedule to the Rules of Procedure and Conduct of Business in Lok Sabha.

• To examine the reports, if any, of the Comptroller and Auditor General of India on the Public Undertakings.

• To examine, in the context of the autonomy and efficiency of the Public Undertakings whether the affairs of the Public Undertakings are being managed in accordance with sound business principles and prudent commercial practices.

The committee from time to time takes up for examination as such any PSU or subjects related to them as they may deem fit and which are within their terms of reference. The dep or Undertaking concerned is asked to furnish necessary material relating to those subjects for information of the Members of the Committee. The Committee may from time to time appoint one or more Study Groups for carrying out detailed examination of various subjects. Association of Members of Rajya Sabha Another motion is also moved in Lok Sabha recommending to Rajya Sabha to nominate seven members of that House for being associated with the Committee. After adoption, the motion is transmitted to Rajya Sabha through a message. Rajya Sabha holds election of members to the Committee and communicates to Lok Sabha the names of the elected members. Appointment of Chairperson The Chairperson of the Committee is appointed by the Speaker, Lok Sabha from amongst the members of the Committee. Minister not to be Member of the Committee A Minister is not eligible to be elected as a member of the Committee and if a member, after election to the Committee, is appointed a Minister, such member ceases to be a member of the Committee from the date of appointment as Minister. Term of Office The term of office of the members of the Committee does not exceed one year. Association of Members with Government Committees. A member, upon election to the Committee on Public Undertakings, has to intimate the Secretariat of the Committee of the particulars regarding the various Committees appointed by Government with which she/ he is associated, for being placed before the Speaker. Where the Speaker considers it inappropriate that a member should continue to serve on the Government Committee, the member is required to resign from the membership of the Committee constituted by the Government. Where the Speaker permits a member to continue to hold membership of Government Committee, such member may require that the report of the Government Committee shall be placed before the Committee on Public Undertakings for such comments as the latter Committee may deem fit to make, before it is presented to Government. Whenever the Chairperson or any member of the Committee on Public Undertakings is invited to accept membership of any Committee constituted by Government, the matter is likewise to be placed before the Speaker before the appointment is accepted. Functions and Scope 8. The functions of the Committee are to examine the reports and accounts of the Public Undertakings specified in the Fourth Schedule of the Rules of Procedure and Conduct of Business in Lok Sabha and the reports of the Comptroller and Auditor General thereon, if any, and to examine, in the context of the autonomy and efficiency of the public undertakings, whether the affairs of the public undertakings are being managed in accordance with sound business principles and prudent commercial practices. The Committee may also examine such subjects or matters which may be specifically referred to it by the House or by the Speaker. The Committee are, however, barred from examining and investigating matters of major Government policy as distinct from business or commercial functions of public undertakings, matters of day-to-day administration or matters for the consideration of which machinery is established by any special statute under which a particular undertaking is established. The Committee may select for examination such undertakings/subjects whose comprehensive appraisal appears in the Audit Report (Commercial) presented to Parliament by the Comptroller and Auditor General of India. The Committee also selects on its own certain other Undertakings/subjects for independent examination. The Committee may also select one or more aspects of working of various Public Undertakings for detailed horizontal study. Constitution of Study Groups/sub-Committee Depending upon the need, a number of Study Groups may be constituted by the Chairperson from amongst members of the Committee for carrying out detailed study of various subjects selected by the Committee and for considering procedural and general matters. Similarly, a sub-Committee may also be constituted for scrutiny of action taken replies furnished by the Government on the Observations/ Recommendations contained in the earlier Reports and to consider the draft Report thereon. Assistance by Comptroller and Auditor General.

The Comptroller and Auditor General assists the Committee in the examination of public sector undertakings selected by the Committee on the basis of audit reports. Calling for Information from Government/Public Undertakings The Committee calls for, in the first instance, preliminary material from the ministries/public undertakings in regard to the working of the public undertakings selected for examination. Subsequently, detailed information covering various aspects of the working of the public undertaking under examination is called for by the Committee from the Government/ undertaking. Memoranda from non- officials The Committee may also call for memoranda on the subjects under examination from non-official organisations/individuals, stakeholders etc. who are knowledgeable in the field/subject under examination. Evidence of non-officials The Committee may call upon individual experts/ representatives of non- official organisations who have submitted memoranda on the subjects under examination to appear before it to tender evidence. Study Visits The Committee undertakes ‘on-the-spot’ Study Visits of various public undertakings, organisations and units connected with the subjects taken up for examination. For this purpose, if considered necessary members of the Committee may be divided into Study Groups. Each Study Visit is undertaken with the specific approval of the Speaker, Lok Sabha.

COMMITTEE ON SUBORDINATE LEGISLATION:

Generally, under the general law, the term 'subordinate legislation' is often used to refer to a legislative instrument made by an entity under a power delegated to the entity by the Parliament. The legislation is too technical or detailed to be suitable for parliamentary consideration. The most effective control that Lok Sabha exercises over subordinate legislation is through its scrutiny Committee the “Committee on Subordinate Legislation: For the first time the Committee was constituted in December, 1953 and has been constituted since then from year to year. The functioning of the Committee on Subordinate Legislation, Lok Sabha is largely governed by the Rules 317 - 322 of Rules of Procedure and Conduct of Business in Lok Sabha and Directions 103 – 108 of Directions by the Speaker, Lok Sabha. The functions of the Committee on Subordinate Legislation are to scrutinize and report to the House whether the powers to make regulations, rules, sub-rules, bye-laws etc. conferred by the Constitution or delegated by Parliament are being properly exercised within such delegation. Committee on Public Undertakings has 22 members from both the houses of parliament 15 from Lok Sabha and 7 from Rajya Sabha}. These members are elected by the members of parliament from amongst themselves via principle of proportional representation by means of a single transferable vote, so that all parties get due representation. Term of the members is one year. However, the chairman of this committee, appointed by Lok Sabha speaker is always from Lok Sabha. A minister cannot become chairman of this committee also.

Functions

Committee on Public Undertakings examines the reports and accounts of public undertakings and also the CAG audit reports on public undertakings. It ascertains if the affairs of the PSU is being managed as per sound business and commercial principles and practices. The companies include all the Government Companies whose Annual Reports are placed before the Houses of Parliament under section 619A of the Companies Act, 1956 and statutory Corporations whose names have been specified in the Fourth Schedule to the Rules of Procedure come within the purview of the Committee. Committee on Government Assurances

There shall be a Committee on Government Assurances to scrutinize the assurances, promises, undertakings, etc., given by Ministers, from time to time, on the floor of the Council and to report on-

(a) the extent to which such assurances, promises, undertakings, etc., have been implemented and

(b) when implemented whether such implementation has taken place within the minimum time necessary for the purpose.

(1) The Committee shall consist of ten members who shall be nominated by the Chairman.

(2) The Committee nominated under sub-rule shall hold office until a new Committee is nominated.

(3) Casual vacancies in the Committee shall be filled by the Chairman.

Chairman of Committee

(1) The Chairman of the Committee shall be appointed by the Chairman from amongst the members of the Committee:

Provided that it the Deputy Chairman is a member of the Committee he shall be appointed Chairman of the Committee.

(2) if the Chairman of the Committee is for any reason unable to act, the Chairman may similarly appoint another Chairman of the Committee in his place. (3) If the Chairman of the Committee is absent from any meeting, the Committee shall choose another member to act as Chairman of the Committee for that meeting.

Quorum

(1) In order to constitute a meeting of the Committee, the quorum shall be five.

(2) The Chairman of the Committee shall not vote in the first instance but in the case of an equality of votes on any matter, he shall have, and exercise, a casting vote.

Power to take evidence or call for papers records or documents

. (1) The Committee shall have power to require the attendance of persons or the production of papers or records, if such a course is considered necessary for the discharge of its duties:

Provided that Government may decline to produce a document on the ground that its disclosure would be prejudicial to the safety or interest of the State.

(2) Subject to the provision of this rule, a witness may be summoned by an order signed by the Secretary-General and shall produce such documents as are required for the use of the Committee.

(3) It shall be in the discretion of the Committee to treat any evidence tendered before it as secret or confidential.

Presentation of report

The report of the Committee shall be presented to the Council by the Chairman of the Committee or, in his absence, by any member of the Committee.

Regulation of procedure

The Committee shall determine its own procedure in connection with all matters connected with the consideration of any question of assurances, promises, undertakings, in the Committee.

Committee on Subordinate Legislation

There shall be a Committee on Subordinate Legislation to scrutinize and report to the Council whether the powers to make rules, regulations, bye-laws, schemes or other statutory instruments conferred by the Constitution or delegated by Parliament have been properly exercised within such conferment or delegation, as the case may be.

Constitution

(1) The Committee shall consist of fifteen members who shall be nominated by the Chairman.

(2) The Committee nominated under sub-rule (1) shall hold office until a new Committee is nominated.

(3) Casual vacancies in the Committee shall be filled by the Chairman.

Chairman of Committee

(1) The Chairman of the Committee shall be appointed by the Chairman from amongst the members of the Committee:

Provided that if the Deputy Chairman is a member of the Committee, he shall be appointed Chairman of the Committee.

(2) If the Chairman of the Committee is for any reason unable to act, the Chairman may similarly appoint another Chairman of the Committee in his place. (3) It the Chairman of the Committee is absent from any meeting, the Committee shall choose another member to act as Chairman of the Committee for that meeting.

(4) In order to constitute a meeting of the Committee, the quorum shall be five.

(5) The Chairman of the Committee shall not vote in the first instance but in the case of an equality of votes on any matter, he shall have, and exercise, a casting vote.

Power to take evidence or call for papers, records or documents

(1) The Committee shall have power to require the attendance of persons or the production of papers or records, if such a course is considered necessary for the discharge of its duties:

Provided that Government may decline to produce a document on the ground that its disclosure would be prejudicial to the safety or interest of the State.

(2) Subject to the provisions of this rule, a witness may be summoned by an order signed by the Secretary General and shall produce such documents as are required for the use of the Committee.

(3) It shall be in the discretion of the Committee to treat any evidence tendered before it as secret or confidential. Functions

After each rule, regulation, bye-law, scheme or other statutory instrument (hereinafter referred to as the `order') framed in pursuance of the Constitution or the legislative functions delegated by Parliament to a subordinate authority and which is required to be laid before Parliament, is so laid before the Council, the Committee shall, in particular consider- (i) whether the order is in accord with the provisions of the Constitution or the Act pursuant to which it is made;

(ii) whether the order contains matter which in the opinion of the Committee should more properly be dealt with in an Act of Parliament;

(iii) whether the order contains imposition of taxation;

(iv) whether the order directly or indirectly bars the jurisdiction of the court;

(v) whether the order gives retrospective effect to any of the provisions in respect of which the Constitution or the Act does not expressly give any such power; (vi) whether the order involves expenditure from the Consolidated Fund of India or the public revenues;

(vii) whether the order appears to make some unusual or unexpected use of the power conferred by the Constitution or the Act pursuant to which it is made;

(viii) whether there appears to have been unjustifiable delay in its

(ix) whether for any reason the form or purport of the order calls for any elucidation.

(1) If the Committee is of opinion that any order should be annulled wholly or in part, or should be amended in any respect, it shall report that opinion and the grounds thereof to the Council.

(2) If the Committee is of opinion that any other matter relating to any order should be brought to the notice of the Council, it may report that opinion and matter to the Council.

Presentation of report

The report of the Committee shall be presented to the Council by the Chairman of the Committee or, in his absence, by any member of the Committee. Regulation of procedure

The Committee shall determine its own procedure in connection with all matters connected with the consideration of any question of subordinate legislation in the Committee.

The most effective control that Lok Sabha exercises over subordinate legislation is through its scrutiny Committee the “Committee on Subordinate Legislation:. For the first time the Committee was constituted in December, 1953 and has been constituted since then from year to year. The functioning of the Committee on Subordinate Legislation, Lok Sabha is largely governed by the Rules 317 - 322 of Rules of Procedure and Conduct of Business in Lok Sabha* and Directions 103 – 108 of Directions by the Speaker, Lok Sabha. * Functions. The functions of the Committee on Subordinate Legislation are to scrutinize and report to the House whether the powers to make regulations, rules, sub-rules, bye-laws etc. conferred by the Constitution or delegated by Parliament are being properly exercised within such delegation. Examination of Orders The Committee on Subordinate Legislation examine all Regulations, Rules, Sub-rules, Bye-laws, etc. commonly known as ‘Orders’, whether laid on the Table of the House or not, framed in pursuance of the provisions of the Constitution or a statute delegating power to a subordinate authority, to make such Orders. After an ‘Order’ is published in the Gazette, it is examined by the Lok Sabha Secretariat to determine whether it is required to be brought to the notice of the Committee on any of the grounds laid down in rule 320 of the Rules and Procedures and Conduct of Business in Lok Sabha or in accordance with any practice or direction of the Committee. In other words Rule 320 ibid primarily prescribe the scope of examination of the statutory orders which reads as under “320. After each such Order referred to in rule 319 is laid before the House, the Committee shall, in particular, consider (i) whether it is in accord with the general objects of the Constitution or the Act pursuant to which it is made; (ii) whether it contains matter which in the opinion of the Committee should more properly be dealt with in an Act of Parliament. (iii) whether it contains imposition of any tax (iv) whether it directly or indirectly bars the jurisdiction of the courts (v) whether it gives retrospective effect to any of the provisions in respect of which the Constitution or the Act does not expressly give any such power (vi) whether it involves expenditure from the Consolidated Fund of India or the public revenues; (vii) whether it appears to make some unusual or unexpected use of the powers conferred by the Constitution or the Act pursuant to which it is made (viii) whether there appears to have been unjustifiable delay in its publication or in laying it before Parliament (ix) whether for any reason its form or purport calls for any elucidation.”

(i) delegate powers to make ‘Orders (ii) amend earlier Acts delegating such powers, with a view to see whether suitable provisions for the laying of the ‘Orders’ on the Table of the House have been made therein. The procedure for examination of the Bills is the same as in case of ‘Orders. Examination of Bills Referred to Committee by Speaker The Speaker may also refer Bills containing provisions for delegation of legislative powers to the Committee and where a Bill is so referred, the Committee shall examine (i) the extent of such powers sought to be delegated (ii) where powers are sought to be delegated to State Governments or other authorities for bringing into operation any subsidiary provisions or to make any further rules or regulations, the necessity for such delegation as well as the extent and manner in which such powers shall be exercised by the subordinate authorities concerned. Where the Committee is of opinion that the provisions contained in the Bill delegating legislative powers should be annulled wholly or in part, or should be amended in any respect, it may report that opinion and the grounds thereof to the House before the Bill is taken up for consideration in the House.

Composition and Term The Committee shall consist of not more than fifteen members who shall be nominated by the Speaker: Provided that a Minister shall not be nominated a member of the Committee, and if a member, after nomination to the Committee is appointed a Minister, such member shall cease to be a member of the Committee from the date of such appointment. The term of office of members of the Committee shall not exceed one year Important recommendations/observations made by the Committee (i) Provision of Rule 70 of the Rules of Procedure and Conduct of Business in Lok Sabha are mandatory and therefore compliance therewith should invariably be made in case of every Bill which involves delegation of legislative power to the Central Government or to any other authority. (ii) Ordinarily, rules should be framed under an Act as soon as possible after its coming into force and in no case this period should exceed six months. (iii) As far as possible, the use of complicated language in the rules should be avoided. Rules should be specific and definite. The use of vague expressions (like ‘unreasonable large quantity’), which may be interpreted differently by different persons, is to be avoided. (iv) In cases where the rules are required to be published in the draft form, a period of not less than 30 clear days should invariably be given to the public to send their comments/suggestions on the draft rules. (v) ‘Orders’, required to be laid before the House, should be laid within a period of 15 days after their publication in the Gazette, if the House is in session. And if the House is not then in session, the ‘Orders’ should be laid on the Table as soon as possible (but within 15 days) after the commencement of the following session, whenever, ‘Orders’ are laid after an inordinate delay, an explanatory note giving the reasons for such delay should be appended thereto. (vi) All rules framed by Government, pursuant to Constitutional or statutory provisions, should invariably be published in the Gazette for public information. (vii) Like rules, regulations should also be, laid before Parliament and there should be a provision to this effect in the relevant statutes. (viii) When the principal rules are required to be laid before Parliament, all statutory orders made under the rules should also be laid on the Table. (ix) Whenever rules are laid on the Table of the House, a Statement of Objects and Reasons and also explanatory notes on the rules should also be appended thereto. When new rules amending the original rules are laid on the Table the relevant extracts of the original rules sought to be amended should also be attached to amending rules. (x) Only matters of procedure and details should be spelt out through Subordinate Legislation. Substantial matters should, more appropriately, be dealt within the Act itself. (xi) No charges should be levied unless there is an express authorisation therefor in the parent law. (xii) The power to impose fees by rules or bye-laws should expressly be given in the parent Act. (xiii) The provision to recover dues of excise duty as arrears of land revenue, being in the nature of an extreme remedy, is a substantive provision for which a specific authorisiation must be made in the Act itself rather than in the rules framed thereunder. (xiv) Retrospective effect to Subordinate legislation cannot be given without an express authorisation therefor in the parent Act. Even the cases where the Government has the power to give effect to Subordinate Legislation such powers should be exercised only in unavoidable circumstances, and the Rules/Regulations framed thereunder should in each case be accompanied by an explanatory note or memorandum affirming that no one was likely to be adversely affected as a result of retrospective effect given thereto. (xv) Rules should not be so framed as to cause an injustice. (xvi) Rules should conform to the principles of natural justice. Conferring the right of being heard to the party adversely affected by a decision of the Executive, recording in writing the reasons for such decision, and communicating the same to the party concerned are the basic requirements of natural justice. (xvii) When a right of appeal has been given to an aggrieved person, the right should not be just illusory. Some reasonable time limit for filling an appeal should be provided.

(xviii) Some safeguard should be imposed before delegate is given wide powers to subdelegate the authority to another functionary. (xix) Having regard to the fact that the manner of filling vacancies and principles of determining seniority are basic ingredients of any service rules, these should be incorporated in the rules and not left to be determined through executive instructions. (xx) Relaxation of rules should be with respect to a class or category of persons and not to an individual, so as to obviate the possibility of discrimination among persons similarly placed. Further, in case an exemption provision is incorporated in rules, it should be provide, ‘for reasons to be recorded in writing’ before grant of an exemption. (xxi) In cases where power to conduct searches/seizures is vested in officers, the minimum rank of the officers empowered to exercise such a power should be specified in the rules. Further, safeguards like presence of witnesses, preparation of investories and giving copies thereof to the persons concerned should be provided. (xxii) In cases of recruitment of Group ‘A’ and Group ‘B’ posts, the relevant recruitment Rules should contain provision regarding consultation with the Union Pubic Service Commission

(xxiii) The provisions of extreme nature such as service of order, summons or notices etc. should not form part of the rules. If absolutely necessary, these should be provided for in the parent Act. (xxiv) The Communications addressed by the Committee should be dealt with the concerned Ministry/Department at a sufficiently high level and replies thereto should be signed by senior officers not below the rank of Deputy Secretary. (xxv) In cases where the rules/regulations/bye-laws are published in draft form for inviting comments/suggestions from the public, those should be finalised and notified in final form within a period of 3 months after the receipt of comments/suggestion.

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STANDING COMMITTEE:

The Parliamentary committees are of two kinds – standing or permanent committees and ad hoc committees. The former are elected or appointed periodically and they work on a continuous basis. The latter are created on an ad hoc basis as the need arises and they are dissolved after they complete the task assigned to them. A standing committee is a committee consisting of Members of Parliament. It is a permanent and regular committee which is constituted from time to time according to the provisions of an Act of Parliament or Rules of Procedure and Conduct of Business. The work done by the Indian Parliament is not only voluminous but also of a complex nature, hence a good deal of its work is carried out in these Parliamentary committees.

Standing committees are of the following kinds :

1. Financial standing committees (FSC)

2. Department related standing committees (DRSC)

In the Indian Parliament, a Standing committee is a committee consisting of Members of Parliament or MPs . It is a permanent and regular committee which is constituted from time to time according to the provisions of an Act of Parliament or Rules of Procedure and Conduct of Business. The work done by the Indian Parliament is not only voluminous but also of a complex nature, hence a great deal of its work is carried out in these Parliamentary committees.[1]

Both Houses of Parliament, Rajya Sabha and Lok Sabha, have similar committee structures with a few exceptions. Their appointment, terms of office, functions and procedures of conducting business are broadly similar. These standing committees are elected or appointed every year, or periodically by the Chairman of the Rajya Sabha or the Speaker of the Lok Sabha, or as a result of consultation between them

There are two types of Parliamentary committee, the Standing committee and the Ad hoc committee. 1. The Standing committees are constituted every year or frequently and they work on continuous basis. 2. Ad hoc committees are temporary and created for specific task. Once that task is completed, the ad hoc committees cease to exist. Standing committees are broadly classified as follows:

• Standing committee of Rajya Sabha

• Standing committee of Lok Sabha

• Departmentally related Standing committee under Rajya Sabha

• Departmentally related Standing committee under Lok Sabha.[2][3][4] functions

Based on the functions, standing committees can be broadly classified in following categories:

• committees to Enquire

• committees to scrutinise and control

• committees relating to day-to-day business of the House

• House Keeping committees

The functions of each of the Standing Committees are (a) to consider the Demands for Grants of the concerned Ministries/Departments and make a report on the same to the Houses. The report shall not suggest anything of the nature of cut motions (b) to examine such Bills pertaining to the concerned Ministries/Departments as are referred to the Committee by the Chairman, Rajya Sabha or the Speaker, Lok Sabha as the case may be, and make report thereon

(c) to consider annual reports of Ministries/ Departments and make reports thereon (d) to consider national basic long term policy documents presented to the Houses, if referred to the Committee by the Chairman, Rajya Sabha or the Speaker, Lok Sabha as the case may be, and make reports thereon day administration of the concerned Ministries/ Departments. The Committees also do not generally consider the matters which are under consideration by other Parliamentary Committees. Procedure relating to consideration of Demands for Grants

9. After the general discussion on the Budget in the House is over, the Houses are adjourned for a fixed period. The Committees consider the Demands for Grants of the concerned Ministries during the aforesaid period and submit their report within the period without seeking any extension of time for the same. There is a separate report on the Demands for Grants of each Ministry. The Demands for Grants are considered by the House in the light of the reports of the Committees. Procedure relating to consideration of Bills

10. The Committee consider only such Bills introduced in either of the Houses as are referred to them by the Chairman, Rajya Sabha or the Speaker, Lok Sabha as the case may be. The Committees consider the general principles and clauses of the Bills referred to them and make report thereon within the given time.

Examination of Annual Reports Besides consideration of Demands for Grants and the Bills referred to them, the Committees may select other subjects for examination on the basis of Annual Reports of the Ministries/Departments within the jurisdiction of the respective Committees. Appointment of sub committees/Study Groups The Chairperson may appoint Study Groups/ sub- Committees from amongst the members of the respective Committee with a view to making detailed study/examination of the subject selected by them, scrutinising the action taken by the Government on the recommendations contained in their previous reports and for considering procedural and general matters. Because they have legislative jurisdiction, standing committees consider bills and issues and recommend measures for consideration by their respective chambers. They also have oversight responsibility to monitor agencies, programs, and activities within their jurisdictions and, in some cases, in areas that cut across committee jurisdictions. Most standing committees recommend funding levels— authorizations—for government operations and for new and existing programs. A few have other functions. For example, the Appropriations Committees recommend legislation to provide budget authority for federal agencies and programs. The Budget Committees establish aggregate levels for total spending and revenue, via the annual budget resolution, that serve as guidelines for the work of the authorizing and appropriating panels. Select or special committees are generally established by a separate resolution of the chamber, sometimes to conduct investigations and studies and, on other occasions, also to consider measures. Often, select committees examine emerging issues that do not fit clearly within existing standing committee jurisdictions or cut across jurisdictional boundaries. A select committee may be permanent or temporary. Select committees may have certain restrictions on member tenure or may include certain specified representatives.

standing committee chairs as ex officio members. Instead of the term select, the Senate sometimes uses special committee the Special Committee on Again Joint committees are made up of Members of both the House and Senate. Today’s permanent joint committees conduct studies or perform housekeeping tasks rather than consider measures.4 For instance, the Joint Committee on Printing oversees the functions of the Government Publishing Office and general printing procedures of the federal government. The chairmanship of joint committees usually alternates between the House and Senate. A conference committee is a temporary joint committee formed to resolve differences between competing House and Senate versions of a measure. Conference committees draft compromises between the positions of the two chambers, which are then submitted to the full House and Senate for approval.

During the recently concluded first Session of the , Parliament sat for 37 days. In the last 10 years, Parliament met for 67 days per year, on average. This is a short of amount of time for MPs to be able to get into the depth of matters being discussed in the House. Since Committees meet throughout the year, they help make up for this lack of time available on the floor of the House. Parliament deliberates on matters that are complex, and therefore needs technical expertise to understand such matters better. Committees help with this by providing a forum where Members can engage with domain experts and government officials during the course of their study. For example, the Committee on Health and Family Welfare studied the Surrogacy (Regulation) Bill, 2016 which prohibits commercial surrogacy, but allows altruistic surrogacy. As MPs come from varying backgrounds, they may not have had the expertise to understand the details around surrogacy such as fertility issues, abortion, and regulation of surrogacy clinics, among others. The Committee called upon a range of stakeholders including the National Commission for Women, doctors, and government officials to better their understanding of the issues, before finalising their report.

Committees also provide a forum for building consensus across political parties. The proceedings of the House during sessions are televised, and MPs are likely to stick to their party positions on most matters. Committees have closed door meetings, which allows them to freely question and discuss issues and arrive at a consensus.

After a Committee completes its study, it publishes its report which is laid in Parliament. These recommendations are not binding, however, they hold a lot of weight. For example, the Standing Committee on Health made several recommendations to the National Medical Commission Bill in 2017. Many of these were incorporated in the recently passed 2019 Bill, including removing the provision for allowing a bridge course for AYUSH practitioners.

There are 24 such Departmentally Related Standing Committees (DRSCs), each of which oversees a set of Ministries. DRSCs were set up first in 1993, to ensure Parliament could keep with the growing complexity of governance. These are permanent Committees that are reconstituted every year. They consist of 21 Members from Lok Sabha, and 10 Members from Rajya Sabha, and are headed by a Chairperson. The DRSCs primarily look at three things:

(i) Bills, (ii) budgets, and (iii) subject specific issues for examination. Other types of Standing Committees include Financial Committees which facilitate Parliament’s scrutiny over government expenditure. Besides these, Parliament can also form ad hoc Committees for a specific purpose such as addressing administrative issues, examining a Bill, or examining an issue.

To ensure that a Bill is scrutinised properly before it is passed, our law making procedure has a provision for Bills to be referred to a DRSC for detailed examination. Any Bill introduced in Lok Sabha or Rajya Sabha can be referred to a DRSC by either the Speaker of the Lok Sabha or Chairman of the Rajya Sabha. Over the years, the Committees have immensely contributed to strengthen the laws passed by Parliament. For example, the Consumer Protection Act, 2019, overhauling the 1986 law, was recently passed during the Budget Session. An earlier version of the Bill had been examined by the Committee on Food and Consumer Affairs, which suggested several amendments such as increasing penalties for misleading advertisements, making certain definitions clearer. The government accepted most of these recommendations and incorporated them in the 2019 Act.