#### Class-notes prepared and uploaded by-Dr Adidur Rahman Dept. of Pol. Science, HAAC h For 4th sem. (Honours), paper-4026, Public Policy &Administration in India

## TOPIC: Methods of Parliamentary control over Budget:

The Parliament of India is the supreme body to have it control over public purse. It authorizes the government to collect taxes and also to spend them in a particular manner. Without the approval of the Parliament neither the amounts can be appropriated nor taxes collected. It can also abolish or decrease or levy taxes. Before the government can work on its budget plan, it has to get it passed by the Parliament. This is known as enactment of the budget. In India, there are several instruments of Parliamentary control over budget such as- questions, adjournment motions, resolutions, votes, and Parliamentary financial committees such as Public Accounts Committee, Estimates Committee, Committee on Subordinate Legislation and the Committee on Assurances. The Comptroller and Auditor General of India-a statutory authority under the Constitution- acts as a watch dog of the Parliament and conducts audit to see that financial control the expenditure incurred by the executive is for the purpose voted by the Parliament and is within the sanctioned grants. These tools may be analysed as follows:

- i. The President addresses both the Houses of Parliament assembled together at i. The President addresses both the Houses of Parliament assembled together at President's the commencement of the budget session. The address is prepared by the Government and each ministry is responsible for the portion pertaining to it. The President's Speech broadly spells out the major policies and activities with which the executive would be pre-occupied in the period immediately ahead. The members of Parliament have an opportunity to criticize the entire realm of administration for its alleged acts of omission and commission.
- ii. introduction of the budget in the Parliament has greater opportunity of ii. introduction of the budget in the Parliament has greater opportunity of Budget discussion: discussion on the budget proposals. The members of Parliament have various opportunities of discussing the budget, on the following occasions:
- a. the presentation of the budget, general discussion takes place. On this occasion the a. the presentation of the budget, general discussion takes place. On this occasion the discussion relates to the budget as a whole or any question of principles involved therein.
- b. on grants provides the second opportunity. Discussion at this stage is confined to b. on grants provides the second opportunity. Discussion at this stage is confined to each head of the Demand and if cut motions are moved to the specific points raised therein, the discussion is sufficiently pointed and may be focused on specific points.
- c. on the Finance Bill provides an endless opportunity to discuss the entire c. on the Finance Bill provides an endless opportunity to discuss the entire administration.
- iii. most effective Parliamentary control over public funds lies in having control iii. most effective Parliamentary control over public funds lies in having control Passing of budget: over the purse string of the nation. Not a penny can be spent without the sanction off the Parliament. As we see that annually the budget is to be passed by the Parliament. The debate on the budget provides an excellent opportunity to the members of the Parliament to bring the Government to its sense with regard to the administration of finances. Thus, the process of the enactment of annual budget by the Parliament visualizes that it is the final custodian of national exchequer.
- iv. exercise control over public expenditure through the Comptroller and Auditor iv. exercise control over public expenditure through the Comptroller and Auditor Audit: General (CAG) who audits all Government accounts to ensure that the money granted by Parliament has not been exceeded without a supplementary vote and money expended conforms to rules. Thus, the Parliament control over finance through the reports of the Comptroller and Auditor General of India who has rightly been described as the guide, philosopher and friend of the Parliament.
- v. it is important to mention here that the Parliament exercises direct v. it is important to mention here that the Parliament exercises direct Parliament's Direct Control control over public expenditure by examining the reports of the committee on Public Accounts and