Explain the structure of the Parliamentary Committee system. How far have the financial committees helped in the institutionalisation of Indian Parliament? (UPSC GS 2 2023/15 marks)

Introduction:

The Parliamentary Committee system plays a vital role in the functioning of the Indian Parliament, contributing to its institutionalization and oversight functions.

The institutionalization of the Indian Parliament has been a crucial aspect of India's democratic evolution. Financial committees have played a pivotal role in this process by enhancing transparency, accountability, and efficiency in fiscal matters. However, certain gaps and challenges persist in achieving full institutionalization.

Structure of the Parliamentary Committee System in India:

1. Types of Committees:

   - Standing Committees: Permanent committees that operate across parliamentary sessions.

   - Ad Hoc Committees: Temporary committees established for a specific purpose and dissolved upon task completion.

2. Classification of Committees:

   - Financial Committees: Focused on fiscal matters.

   - Departmentally Related Standing Committees (DRSCs): Examine various government departments.

   - Other Committees: Cover a wide range of subjects like ethics, privileges, and rules.

3. Composition:

   - Members from both houses of Parliament (Lok Sabha and Rajya Sabha).

   - Representation proportional to the party strength in Parliament.

   - The chairperson is typically from the ruling party, ensuring balanced representation.

4. Functions:

   - Legislative Scrutiny: Examine bills and provide valuable inputs.

   - Policy Formulation: Contribute to policy development and implementation.

   - Oversight: Monitor executive actions and ensure accountability.

   - Financial Control: Scrutinize budgetary allocations and expenditures.

How Financial Committees Helped in Institutionalizing Indian Parliament

1. Oversight of Government Expenditure:

   - Financial committees, such as the Public Accounts Committee (PAC) and the Estimates Committee, review government expenditure.

   - Example: The PAC scrutinized the 2G spectrum allocation, uncovering irregularities.

2. Ensuring Accountability:

   - These committees hold the government accountable for its financial decisions.

   - Example: The PAC held hearings on the Commonwealth Games scam, leading to accountability.

3. Rational Allocation of Resources:

   - The committees assess the government's budgetary allocations to ensure they align with national priorities.

   - Example: The Estimates Committee recommends changes to budget allocations to better serve public interests.

4. Transparency in Financial Matters:

   - They enhance transparency by examining financial documents and government spending.

   - Example: The Comptroller and Auditor General's (CAG) report on Rafale deal was reviewed by the PAC for transparency.

5. Expertise and Specialization:

   - These committees consist of MPs with specialized knowledge in finance, which aids in informed decision-making.

   - Example: The PAC has chartered accountants and financial experts as members.

6. Continual Improvement:

   - They provide recommendations for improving financial management processes.

   - Example: Recommendations from the PAC led to reforms in the GST system.

7. Upholding Democratic Values:

   - Financial committees uphold democratic principles by ensuring that public funds are utilized for public welfare.

   - Example: The PAC's scrutiny of MPLADS fund utilization ensures accountability at the grassroots level.

Areas Still Remaining in Institutionalization of Indian Parliament

1. Limited Powers of Committees: Committees lack the power to enforce their recommendations, limiting their effectiveness. Example: Despite PAC recommendations, some government officials escape accountability.

2. Political Influence: Political considerations can influence committee proceedings, compromising their impartiality.

3. Resource Constraints: Committees often face resource constraints, impacting their ability to thoroughly investigate financial matters.

4. Incomplete Implementation: Despite committee recommendations, not all suggestions are implemented, undermining the purpose of scrutiny.

5. Lack of Public Awareness: Many citizens remain unaware of the role and significance of financial committees.

6. Ensuring Regional Representation: Ensuring that financial committees represent diverse regional interests is a challenge.

Conclusion:

The Parliamentary Committee system in India is a crucial component of the democratic process, aiding in legislative scrutiny, policy formulation, and financial control. While financial committees have undeniably contributed to the institutionalization of the Indian Parliament. However, addressing the gaps in their functioning is crucial to further strengthen India's parliamentary institutions and uphold democratic values.