Introduction
The Indian Parliament plays a very important role in the budget-making process. The national budget is a financial statement that shows the government’s income and spending for a particular financial year. The budget affects every citizen, and the Parliament ensures that the funds are used wisely, fairly, and for the development of the country. In this answer, we will explore how the Indian Parliament is involved in preparing, reviewing, and approving the budget.
Stages of Budget Process in Parliament
1. Presentation of the Budget
The Union Budget is presented in the Lok Sabha (the lower house of Parliament) by the Finance Minister, usually on the 1st of February every year. The budget includes details about the government’s expected income (through taxes, loans, etc.) and how it plans to spend this money (on sectors like health, education, defense, etc.).
2. General Discussion
After the budget is presented, a general discussion takes place in both houses—Lok Sabha and Rajya Sabha. Members of Parliament (MPs) discuss the overall priorities of the budget and whether it meets the needs of the people. However, no voting takes place during this stage.
3. Department-Wise Scrutiny by Standing Committees
The budget is divided and sent to different Parliamentary Standing Committees. These committees examine the budget proposals for various ministries and departments in detail. They interact with ministry officials and experts to understand whether the proposed allocation is enough and aligned with policy goals.
4. Demand for Grants
Each ministry submits a “Demand for Grants” for its expenditure. These are discussed in the Lok Sabha. MPs can question the expenses and suggest changes. After the discussion, these demands are put to vote. This is an important stage where the Parliament exercises its control over public spending.
5. Guillotine Process
Due to time constraints, not all demands can be discussed. At a certain deadline, the Speaker of Lok Sabha applies a procedure called “guillotine” where all remaining demands are passed without discussion.
6. Passing of Appropriation Bill
After the demands for grants are passed, the government introduces the Appropriation Bill. This bill allows the government to withdraw money from the Consolidated Fund of India to meet its expenses. The bill must be passed by the Parliament.
7. Passing of Finance Bill
This bill includes the tax proposals of the government such as changes in income tax, GST, customs, etc. It must be passed by both houses of Parliament to become law. It is essential for raising revenue for the budget.
Importance of Parliament in the Budget Process
- Ensures Transparency: Parliamentary discussions and debates make the budget process open to the public.
- Checks Government Power: Parliament ensures the executive does not misuse public funds.
- Represents People’s Voices: MPs can raise concerns of their constituencies and suggest better use of funds.
- Encourages Accountability: Ministries are held accountable for how they plan to spend the funds.
Gender Budgeting and Parliament
The Indian Parliament also supports gender budgeting by reviewing whether budget allocations are helping women and promoting gender equality. Parliamentary committees can question ministries on how their programs are addressing gender gaps.
Conclusion
The Indian Parliament plays a central role in shaping, reviewing, and approving the national budget. It ensures that the government’s financial plans serve the interests of the public and follow principles of equity and justice. Through various stages like debates, committee scrutiny, and voting, the Parliament keeps the budget process democratic and accountable. In this way, it becomes a key pillar of financial governance in India.