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Administrative Law

• The increase in administrative functions has created a vast new complex of


relations between the administration and the citizen.
• This circumstance has posed certain basic and critical questions for us to
consider:
a. Does arming the administration with more and more powers keep in view the
interests of the individual?
b. Are adequate precautions being taken to ensure that the administrative
agencies follow in discharging their functions such procedures as are
reasonable, consistent with the rule of law, democratic values and natural
justice?
c. Has adequate control mechanism been developed so as to ensure that the
administrative powers are kept within the bounds of law, and that it would not
act as a power drunk creature, but would act only after informing its own mind,
weighing carefully the various issues involved and balancing the individual’s
interest against the needs of social control?
• Administrative law is a branch of public law that is concerned with the
procedures, rules, and regulations of a number of governmental agencies.

• Administrative agencies can be broadly classified into three the Legislative, the
Executive and the Judiciary. All the administrative activities can be covered under
these three main heads.

• It becomes necessary to keep an eye on these Administrative Agencies and


regulate the activities of the Administrative.

• Administrative law deals with the powers of the Administrative authorities, the
manner in which the powers are exercised and the remedies which are available to
the aggrieved persons when those powers are abused by these authorities. 

• Administrative law is a part of constitutional law and all concerns of


administrative law are also concerns of constitutional law.

• The main object of the study of administrative law is to unravel the way in which
these administrative authorities could be kept within their limits so that the
discretionary powers may not be turned into arbitrary power
• The relationship of the administrative authorities and the people
have become very complex.

• Administrative law is the bye-product of the growing socio-


economic functions of the State and the increased powers of the
government.

• In the ancient society the functions of the state were very few the
prominent among them being protection from foreign invasion,
levying of Taxes and maintenance of internal peace & order.

• But in the modern society, the functions of the state are manifold,
In fact, the modern state is regarded as the custodian of social
welfare and consequently, there is not a single field of activity
which is free from direct or indirect interference by the state.
• There are four principal sources of administrative
law in India:-

a. Constitution of India

b. Acts and Statutes

c. Ordinances, Administrative directions,


notifications and Circulars

d. Judicial decisions
Nature and scope of administrative law
• Administrative law is not codified like the Indian Penal code or the
law of Contracts. It is based on the constitution.

• Administrative law is essentially Judge made law. It is a branch of


public law as compared to private law-relations inter-se.

• Administrative law is an ever-expanding subject in developing


society and is bound to grow in size as well as quality in coming
the decades.

• Principles of administrative law emerge and development


whenever any person becomes victim of arbitrary exercise of
public power. Therefore administrative law deals with relationship
individual with power.
• The administrative agencies derive their authority from
constitutional law and statutory law.

• Inadequacy of the traditional Court to respond to new


challenges has led to the growth of administrative
adjudicatory process.

• Administrative law primarily concerns with official action


and the procedure by which the official action is reached.

• Administrative law includes the control mechanism


(judicial review) by which administrative authorities are
kept within bounds and made effective.
DELEGATED LEGISLATION
• One of the most significant developments of the present century is the
growth in the legislative powers of the executives.

• We know that there is no such general power granted to the executive


to make law it only supplements the law under the authority of
legislature.

• This type of activity namely, the power to supplement legislation been


described as delegated legislation or subordinate legislation.

• Delegated legislation means legislation by authorities other than the


Legislature
• Delegation is considered to be a sound basis
for administrative efficiency

• The delegation should not, in any case, be


unguided and uncontrolled.
Why delegated legislation becomes inevitable
• Certain emergency situations may arise which necessitate
special measures. In such cases speedy and appropriate action
is required.
• The bulk of the business of the Parliament has increased and it
has no time for the consideration of complicated and technical
matters.
• Certain matters covered by delegated legislation are of a
technical nature which require handling by experts.
• Parliament while deciding upon a certain course of action
cannot foresee the difficulties, which may be encountered in
its execution.
• The practice of delegated legislation introduces flexibility in
the law.
Types of delegation of legislative power in India
• There are various types of delegation of legislative power

a. Skeleton delegation: In this type of delegation of


legislative power, the enabling statutes set out broad
principles and empowers the executive authority to
make rules for carrying out the purposes of the Act.

b. Machinery type: This is the most common type of


delegation of legislative power, in which the Act is
supplemented by machinery provisions, that is, the
power is conferred on the concerned department of the
Government in the defined manner.
• The control of delegated legislation may be one or more of the following
types:
 Procedural
 A Prior consultation of interests likely to be affected by proposed delegated
Legislation
 Prior publicity of proposed rules and regulations
 Publication of Delegated Legislation
 Parliamentary
 taking the opportunity of examining the provisions providing for
delegation in a Bill
 getting them scrutinized by parliamentary committee of the Rules,
Regulations, Bye-laws and orders,
 Judicial
 Doctrine of ultra vires
 Use of prerogative writs.
Right to Information (RTI)
• Right to information means the freedom of people to have
access to government information

• It implies that the citizens and non-government organizations


should enjoy a reasonably free access to all files and
documents pertaining to the government operations, decisions
and performance.

• It promotes openness and transparency in the functioning of


government

• Sweden was the first country to introduce RTI in 1766


• The right to information is necessary due to the following reasons:

1. It makes administration more accountable to people

2. It reduces the gap between administration and people

3. It makes people aware of administrative decision making

4. It facilitates better delivery of goods and services to people by civil servants

5. It facilitates intelligent and constructive criticism of administration

6. It increases the peoples participation in administration

7. It promotes public interest by discouraging arbitrariness in administrative decision making

8. It reduces the scope for corruption in public administration

9. It upholds democratic ideology for promoting openness and transparency in administration

10.It makes administration more responsiveness to the requirements of people

11.It reduces the chance of abuse of authority by the public servants


• In India, supreme court has been stating since 1975 that the RTI is an intrinsic part of the
two fundamental rights i.e.

a. Right to freedom of speech and expression (article 19)

b. Right to life and personal liberty (article 21)

• In 2005, the parliament has enacted a new legislation i.e. Right to Information Act (2005)

• This act replaces the old freedom of information act, 2002

• RTI act (2005) confers all indian citizens the right to access to the information and promotes
openness and transparency.

• The various provisions of the act includes:


It provides for the appointment of an Information Officer in each department to provide
information to the public on request

It fixes 30 days deadline for providing information

Deadline is 48 hours if information concerns life or liberty of a person


Information will be free for people below poverty line. For others, fee will be reasonable

The act imposes obligation on public agencies to disclose the information suo-motu to
reduces requests for an information

Government bodies have to publish details of staff payments and budgets

It provides for establishment of a Central Information Commission and State


Information Commission.

The President appoints Chief Information Commissioner (CIC) and Governor will
appoint State Information Commissioner (SIC).

Their tenure will be of Five Years.

CIC & SIC will publish an annual report on the implementation of the Act.

These reports will be tabled before parliament and state legislature

It carries strict penalties for falling to provide information or affecting its flow. The
erring officials will be subject to departmental proceedings
The information commission shall fine an official
Rs 250 per day ( subject to maximum of Rs. 25000)
if information is delayed without reasonable cause
beyond the stipulated 30 days.

The procedure of appeal in case the information is


denied is like this – first appeal to superior of
public information officer, second appeal to
information commission and third to a high court.

Its purview doesn’t extend to Intelligence and


security agencies.
Development Administration
• Development administration is that aspect of public administration in which the
focus of attention is on organizing and administering public agencies in such a
way as to stimulate and facilitate defined programmes of social and economic
progress.

• Development administration is a complex web of agencies, management systems


and processes, a government establishes to achieve development goals

• Development administration is the administration of policies, programmes and


projects to serve development purposes.

• Development administration started in the 1950’s and 1960’s

• George Gant is regarded as the father of development administration


• The factors which contributed to the rise of development
administration includes

a. Over emphasis on the study of means of administration and


under emphasis on the study of goals of administration

b. Emergence of newly independent developing countries in Asia,


Africa etc. due to the liquidation of colonialism and imperialism

c. U.N sponsored development schemes in the developing


countries

d. Search for a new administration model to meet the development


needs of the developing countries.
• The development administration has the following characteristics:

a. Change orientation

b. Goal orientation

c. Commitment

d. Client orientation

e. Time orientation

f. Citizen participative orientation

g. Innovativeness

h. Ecological perspective

i. Effective coordination

j. Responsiveness
• Approaches to development administration can be grouped into two categories

 Early approaches: During 1950’s and 1960’s the development theorists


explained developed in the third world countries in terms of the western model.
They emphasised Gross National Product as a measure of a nations progress in
development. The early approaches included

a. Economic approach: This approach suggested that developing countries should


save more and invest it as capital. This approach emphasised growth through
industrialisation

b. Diffusion approach: This approach explained development through diffusion


process by which a third country adopts capital, technology and social
structure from western industrialized countries

c. Psychological approach: This approach believes development can be ensured


through presence of some individual personality traits like achievement
motivation, change orientation, leadership etc.
Contemporary Approaches: Since the 1970’s and 1980’s , the
development theorists have been focusing on context based
approaches to development and not universalism based
approach to development.

a. From blue print to learning process: the blue print approach


emphasises advanced planning “for the people” and
learning process emphasises planning “with the people”

b. From production centered to people centered: The


production centered approach involves production of goods
and services to maximize returns on investment. The people
centered approach emphasises on the empowerment of
people.
Anti Development Thesis
• Anti development thesis or concept is not against the concept of development but it
opposes on the application of western development ideas and theories on the development
programmes and projects of the third world countries.

• The main contention is that the social, cultural, political and economical scenario in Asian,
African and Latin American countries are different from each other as well as from the
western world.

• In other words, if these countries want to achieve a real development then it should be
done by giving emphasis on economic, social, cultural and political aspects of those
countries and not imitating what the western European or USA has done. 

• It is proposed by the scholars that when the development projects are planned and framed
then the local situation of the countries should be given prime importance and the
administration should have a paradigm shift (change in model) from western ideas and
experiences to local ideas and experiences.
• Anti development theorists opined that the real aim of western development is linked to modernization
which is basically a way of increasing dependency of developing countries on of western world.

• The criticism is centered around the costs of these development models The costs include

1. Social costs: Displacement of people due to industrial development etc and the resultant social
tensions.

2. Environmental costs: Environmental degradation due to developmental projects like ports and
mining.

3. Economic costs: By employing the present development models, the Asian and African countries are
still reeling under external debt. Though many countries achieved better economic growth, poverty
continues to be a problem in the developing world and world over, the gap between the rich and the
poor has been widening.

• So, it calls for:

 A broader notion of development which focus on the overall quality of life of the people, equitable
distribution, satisfaction of basic needs, valuable capabilities and functioning of the people

 Sustainable Development: Development that meets the needs of the present generation without
compromising the ability of future generations to meet their own needs.
Bureaucracy Democracy and Development
• Bureaucracy and development are two components of development philosophy

• Bureaucracy viewed by the Weberian model and other theorists pertains to same routine,
unchanged and repeated procedures that enable it to continue, achieve its pre-established
goals and handle its problems like a system without being influenced by external factors.

• Development as a concept on the other hand is seen as a phenomenon influenced by the


concept of change and is quick to adapt and adjust to changes coming in through both external
as well as internal factors on the way to development.

• Bureaucracy and development are complementary and inter dependant

• In order to sensitise the bureaucracy for development processes it is suggested to provide them
training in attitudinal changes and incorporate dynamic and social values in them to know the
requirement, preparation of strategy and implementation of programmes in the present
ecological setting in order to uplift the socio-cultural and economic status of the country.
• The Interaction Between Democracy and Development,
democracy embodies four basic principals: freedom, justice,
free participation of citizens and human rights.

• These democratic principals are thought to constitute a


fundamental source of common value that can be described
as the common heritage of humankind.

• Though common to all "true democracies," these principals


will take on different forms, and will be realized by different
means, in different societies.

• It is thought that democracy should reflect the specific


social, cultural and economic context of a given society.
Models of Policy Making
• Public Policy in the broad term refers to the policy (plan of what to do) that is formulated and
implemented for the benefit of the public.

TYPES OF PUBLIC POLICIES:

1. Substantive Public Policy: These are the policies concerned with the general welfare and development
of the society like provision of education and employment opportunities, economic stabilization, law
and order enforcement, anti pollution laws etc are its examples. It does not cater to any particular or
privileged section of society and have to be formulated dynamically keeping in mind the goals and
characteristics of the constitution and directive principles of state policy as well as the current and
moral claims of society.

2. Regulatory Public Policy: These policies are concerned with regulation of trade, business, safety
measures, public utilities etc performed by independent organizations working on behalf of the
government like LIC,RBI,SEBI,STATE ELECTRICITY BOARDS etc. Policies pertaining to to these
services and organizations rendering these services are known as regulatory policies.

3. Distributive Public Policy: These are the policies meant for specific segments of society especially the
needy ones. Public assistance and welfare programmes, adult education programme, food relief, social
insurance, vaccination camps, public distribution systems etc are all examples of such policy.
4. Redistributive Public Policy: These policies are concerned with rearrangement of policies
concerned with bringing basic social and economic changes. Certain assets and benefits are divided
disproportionately amongst certain segments of society and so those need to be redistributed so it
reaches where it is needed and does not lie about surplus somewhere else.

5. Capitalisation Public Policy: These policies are related to financial subsidies given by the
Centre to state and local governments and central and state business undertakings,etc and is not
directly linked to public welfare as the others listed above. it does contribute but indirectly. It is
basically infrastructural and development policies for govt. business organisations to keep
functioning properly.

6. Constituent Public Policy: It is the policies relating to constituting new institutions/mechanisms


for public welfare.

7. Technical Public Policy: It relates to the policies framed for arrangement of procedures,rules and
framework which a system shall provide for discharge of action by various agencies on the field.
 
MODELS OF POLICY MAKING

1) Institutional Model

2) Systems Model

3) Rational Model
 - 
4) Bounded Rationality Model

5) Incrementalism Model

6) Game Theory

7) Elite Model

8) Group Theory

9) Market Exchange Model


BUDGET
• Financial administration is an important of public administration

• It operates through the instrument of Budget

• The term Budget was for the first time used in 1773

• The term budget is derived from an old English word “BOUGETT” which means a
sack or pouch

• A budget is a financial statement, prepared in advance of the opening of a fiscal


year, of the estimated revenues and proposed expenditures of a given organization

• Budget is a detail of estimated revenues and expenditures – a comparative chart of


revenues and expenditures
• Budgets are not merely matters of arithmetic but in a
thousand ways contribute to the root of prosperity of
individuals of a nation

• Budget is a process in which the instruments of taxation


and expenditures are used to influence the course of
economy

• Budget is the life blood of the government

• The real significance of the budget system lies in


providing for the orderly administration of the financial
affairs of a government.
• Principles of sound budgeting includes:

a. Budget should be on annual basis

b. Estimates should be on departmental basis

c. Budget should be a balanced one

d. Estimates should be on a cash basis

e. One budget for all financial transaction

f. Rule of Lapse

g. Estimating should be close

h. Budgeting should be Gross and not Net


Types of Budgets
Line Item Budgeting:
• It is also called as Traditional Budgeting or conventional budgeting

• It developed around 18th & 19th century

• It emphasizes on the items of expenditure without highlighting its purpose

• Under this system, the amount granted by the legislature on a specific item be spent
on that item only

• The objective of this budgeting is to prevent wastage, over-spending and misuse of


money granted

• This system of budgeting facilitates maximum control of public money


Performance Budgeting:
• It is also called as functional or activity budgeting

• It originated in the USA

• The term performance budget was coined by the First Hoover Commission in
1949

• The performance budgeting emphasizes on the purpose of expenditure.

• It presents budget in terms of functions, programmes, activities and projects.

• It establishes correlation between the performance and financial input aspect of


each programme and activity

• India adopted performance budgeting in 1968 on the recommendation of


Administrative reforms commission
Programme Budgeting:
• It is also called as Planning-Programming-Budgeting System (PPBS)

• It also originated in the USA

• It was introduced in USA by President Johnson in 1965 and was


abandoned in 1971.

• This system of budgeting integrates the planning, programming and


budgeting functions

• It emphasizes planning aspect of budgeting for selecting out the best out
of a number of available programmes and for optimising the choice in
economic terms while allocating funds in the budget

• It treats budgeting as an allocating process among the competing claims


Zero-Based Budgeting:
• It also originated and developed in the USA

• It was created in 1969 by Peter A. Pyhrr

• It was introduced in the USA by president Jimmy carter in 1978

• Under this system, every scheme should be reviewed critically and


rejustified totally from zero (or scratch) before included in the budget

• It involves total reexamination of all schemes afresh instead of


following the incremental approach to budgeting

• In zero budgeting each department has to justify his entire budget


request in details from scratch.
Agencies involved in Budgeting
• The constitution of India refers to the budget as the annual financial statement
and has been dealt with in article 112 of the constitution

• There are four prominent agencies involved in the formulation of budget in


India i.e.

1. The finance ministry

2. The administrative ministries

3. The planning commission

4. The comptroller and auditor general


Stages/Process of Budget
 Preparation of estimated by the Drawing &
Disbursing officers:
• In September- October, i.e. 5-6 months before the
commencement of the financial year, the Finance
ministry dispatches circulars and forms to
administrative ministries inviting their estimates
of expenditure for the ensuing financial year.
 Scrutiny and consolidation of estimates by the
departments and ministries:
 Scrutiny by the Finance Ministry
 Settlement of Disputes
 Consolidation by the Finance Ministry:
• The finance ministry consolidates the budget
estimates on the expenditure side.
• Base on the estimated expenditure, the finance
ministry prepares the estimates of revenue in
consultation with the central board of direct taxes and
central board of indirect taxes.
• It is also assisted in this regard by the Income-Tax
department and central excise & customs department.
 Approval by the Cabinet
Charged Expenditures
• The estimates of budget as finalized by the finance
ministry for presentation to the Parliament consists of two
types of expenditure i.e.

a. The expenditure “charged” upon the constitution fund of


India

b. The expenditure ‘made” from the constitution fund of


India

• The charged expenditure is non-votable by the parliament


i.e. it can only be discussed by the Parliament
 Enactment of Budget:
• Enactment of budget means the passage of
approval of the budget by the parliament and
ratification by the President

• This legalizes the receipts and expenditure of


the government

• This means that the government can neither


collect money nor spend money without the
enactment of the budget.
Presentation of Budget:
• Rule 213 of the Lok Sabha provides for the presentation of the Budget
to the Lok Sabha in two parts – railway and general budget. General
Budget is presented on the last working day of Feb. and railway budget
on 3rd week of Feb.

• Railway Budget is presented to the Lok Sabha by the Railway Minister

• General Budget is presented to the Lok Sabha by the Finance Minister

• After Lok Sabha, budget is presented before Raj Sabha which can only
discuss budget and has no power to vote on the demand for grants
General Discussion:
• The general discussion on the Budget begins a few days after its
presentation. It takes place in both the houses of parliament & lasts
usually for three to four days.
Scrutiny by Departmental Committees:
• After the general discussion on the budget is over,
the houses are adjourned for about three to four
weeks.

• During this gap, the 17 departmental standing


committees of the parliament examine and discuss
in detail the demands for grants of the concerned
ministries & prepare report on them

• These reports are submitted to the both the Houses


of Parliament for consideration
Voting on Demands for Grants:
• In the light of the reports of the departmental standing
committees, the Lok Sabha takes up voting of demands for
grants

• The demands are presented ministrywise

• A demand becomes a grant after it has been duly voted

• Two points should be noted in this context, one, the voting of


demands for grants is the exclusive privilege of the Lok Sabha
i.e. Raj Sabha has no power of voting the demands

• Second, the voting is confined to the votable part of the budget.


• The general budget has totally 109 demands ( 103 for civil expenditures and 6 for
defence expenditures)

• The railway budgets has 32 demands

• Each demand is discussed & voted separately by the Lok Sabha

• They can also move motions to reduce any demand for grants. Such motions are
called as Cut Motions. They are of three types:

a. Disapproval of Policy Cut Motion: it represents the disapproval of the policy


underlying the demand. It states that the amount of the demand be reduced to Rs. 1.

b. Economy Cut Motion: It represents the economy that can be affected in the
proposed expenditures. It states that the amount of the demand be reduced by a
specified amount.

c. Token Cut Motion: It states that the amount of the demand be reduced by Rs. 100.
• In total 26 days are allotted for the voting of demands.

• On the last day (i.e. 26th day) the speaker puts all the remaining
demands to vote and disposes them whether they have been discussed
by the members or not. This is called as Guillotine.

Passing of Appropriation Bill:


• The constitution of India states that “no money shall be withdrawn from
the consolidated fund of India except under appropriation made by law.

• According, an appropriation bill is introduced to provide for the


appropriation out of the consolidated fund of India required to meet :

i. The grants voted by the Lok Sabha

ii. The expenditure charged on the consolidated fund of India


• The appropriation bill becomes the appropriation act after its is
assented by the President.

• This act authorizes or legalizes the payments from the


consolidated fund of India

• Passing of appropriation bill & then appropriation act takes time


& usually goes on till the end of April.

• But the government needs money to carry on its normal activities

• To overcome this functional difficulty, the constitution has


authorized the Lok Sabha to make any grant in advance in respect
of the estimated expenditures.
• This provision is known as the “Vote on Account”

• It is passed after the general discussion on budget is over

• It is generally granted for two months for an amount equivalent to one sixth of the
total estimation

Passing of Finance Bill:


• Under rule 219 of the Lok Sabha, the finance bill means the bill ordinarily introduced
to give effect to the financial proposals of the government

• It is subjected to all the conditions applicable to a Money Bill

• Unlike, appropriation bill, the amendments (seeking to reject or reduce a tax) can be
moved in the case of finance bill

• Finance bill must be enacted and assented to by the President within 75 days

• Finance Act legalizes the income side of the Budget and completes the processes of
the enactment of the Budget.
Other Grants
• In addition to the budget which contains the ordinary estimates of Income & expenditure of
Government for one financial year, various other kinds of grants are made by the Parliament
under special circumstances

a. Supplementary Grant: It is granted when the amount authorized by the Parliament through
appropriation act for the current financial year is found to be insufficient.

b. Additional Grant: It is granted when a need has arisen during the current financial year for
additional expenditure

c. Excess Grant: It is granted when money has been spent on any service during a financial year
in excess of the amount granted for that service in the budget for that year.

d. Vote of Credit: It is granted for meeting an unexpected demand upon the resources of India,
when on account of the magnitude or the indefinite character of the service the demand cannot
stated with the details ordinarily given in a budget.

e. Exceptional Grant: It is granted for a special purpose & forms no part of the current service
of any financial year

f. Token Grant : It is granted to meet expenditure for any new service for which the funds can
be made available by reappropriation, i.e. transfer of funds from one head to another.
Public Borrowings & Public Debt
• If revenue collected through taxes & other sources is not adequate
to cover government expenditure government may resort to
borrowing. 
• Public borrowing is the total amount of money that has been
borrowed by the government.
• The government issues bonds and securities for borrowing money. 

• Public Debt is an instrument of resource mobilization by the


government

• Public debt denotes borrowings of government from the people,


banks and financial institutions
• Public debt carries with it the obligation on the part of the
government to pay money back to the individuals from whom it has
been obtained

• Public borrowings and public debt is interchangeable used but there


is a difference between the two terms.

• Public debt is the total cumulative debt owned by a government at a


point in time.

• I earn $100 and spend $110, so to finance the $10 deficit, I borrow
money from friends. My public borrowing would be $10 dollars.

• If I have been borrowing money consistently from friends over a


period of time and I owe them a total of $500, this becomes my
public debt
Classification of Public Debt:
a. Internal & External

b. Voluntary & Compulsory

c. Productive & Unproductive

d. Funded & Unfunded

e. Redeemable & Irredeemable


Financial Accountability
• Financial accountability results from holding an individual
accountable for effectively performing a financial activity
within a financial transaction process.

• A well-defined financial accountability structure serves as


the foundation for establishing effective financial processes.

• To implement & ensure financial accountability, various


mechanism have been created which include budget process,
parliamentary committees, account & audit offices, CAG
office etc.
Parliamentary Control
• The Parliament is the custodian of public money, and
what better way to keep an eye on the authorities spending
the money

• The methods adopted by the Parliament for controlling


expenditure may be broadly classified into two categories:

(a) Built-in techniques in parliamentary procedure,

(b) Committees appointed by the Parliament


Built-in techniques in parliamentary procedure
Resolutions
• A member can also move a resolution on a matter of public interest. Fifteen
days notice is required for moving a resolution.
• The resolution must raise some definite issue and should not deal with the
conduct of anyone except in his official capacity.
Motions
• When a member of the Parliament feels that a particular matter or report ought
to be discussed in the House, a motion for that has to be brought before the
House.
• A notice for such a motion has to be given according to set rules. When a
member moves a motion, he may speak on it and so can the other members.
Then, the debate over it takes place.
Adjournment Motion
• An adjournment motion is a device which enables the House to discuss
matters of urgent importance.
• The proposing member has to give a notice to the Speaker, generally before 12
o’clock.
• If forty or more members support it, it is considered passed and the matter is
taken up for discussion.
 Calling Attention Motion
• Another popular device innovated in the Indian Parliament is that of the
“calling attention motion”.

• By this method a member can ask for an explanation or a clarification from


a minister on matters of urgent public importance at short notice. However,
the Speaker is free to grant such a request or disallow it.
 Debates and Discussions
Committees appointed by the Parliament
Types of Parliamentary Committees

1. Based on purpose and duration.

a. Adhoc.

b. Standing – Advisory and Enquiry.

2. Based on composition.

c. Select – Single House, ie either LS or RS.

d. Joint – Both Houses.


Committee on Public Accounts
• This Committee consists of 15 members elected by the Lok Sabha and 7 members of the
Rajya Sabha are associated with it. 

Estimate Committee
• The Estimates Committee consists of 30 members, elected every year by the Lok Sabha
from amongst its Members.

Committee on Public Undertakings


• The committee has 22 members, which include 15 members elected by the Lok Sabha
and 7 by the Rajya Sabha. 

Business Advisory Committee


• The committee of Lok Sabha and Rajya Sabha consist of 15 and 11 members
respectively.

Committee on Government Assurances


• This committee scrutinizes the assurances, promises, undertakings etc. given by
ministers from time to time and to report to the respective house and to see whether such
implementation has taken place within the minimum time necessary for the purpose. The
committee consists of 15 members in Lok Sabha and 10 members in Rajya Sabha.
Controller General of Accounts
• In 1976, a new office of the controller general accounts was established

• He is to administer matters relating to accounts of the central government

• His role in the financial accountability and public administration are as:

 He prescribes general principles & form of accounts of central as well as state


governments & frames rules & manuals relating thereto

 He carries out the budget control, payments, receipt collection and accounting
functions

 He provides regular feedback to the finance minister and other line ministries on
the status of government finances

 He provides technical advice to all civil ministries & departments on various


accounting matters . His advice is binding on them
 He is responsible for disbursement & accounting of pension payments to
retiring government employees

 He conducts the internal audit of the expenditure incurred by the various


ministries and departments of the central government to bring out
financial irregularities

 He is responsible for the evaluation & processing of proposals relating to


the capital restructuring & disinvestments of various PSU’s

 He manages the cadre of the Indian civil accounts services

 He consolidates the monthly and annual accounts of the central


government

 He prepares a condensed form of the appropriation accounts and finance


accounts of the central government
COMPTROLLER & AUDITOR
GENERAL OF INDIA
• The constitution of India (Article 148) provides for an independent office of the
CAG

• He is the head of the Indian audit and accounts department

• He is the guardian of public purse and controls the entire financial system of the
country at both levels – centre & state

• He is appointed by the President of India

• He holds office for six years

• Before taking over his office, CAG makes & subscribe before the President an
oath to carry out the duties of his offices faithfully

• He/she can resign from his/her post by addressing the resignation to the President.
• He/she can be removed by the President on the basis of a resolution passed on
that effect by both the houses of the parliament with special majority, either on
the grounds of proved misbehavior or incapacity

• The constitution of India under article 149 authorizes the parliament to prescribe
the duties and powers of the CAGR in relation to the accounts of the union, state
and of any other body.

• Accordingly, the parliament enacted the CAG’s (duties, powers and conditions)
act, 1971. Which was amended in 1976 to separate the accounts from audit.

• The constitution of India has made certain provisions to safeguard and ensure the
Independence of CAG office. They include

 He is provided with the security of tenure. He/she doesn’t hold his/her office till
the pleasure of the president, though he/she is appointed by him/her

 He is not eligible for further office, either under central or state government, after
he/she ceases to hold his/her office
 His salary & other service conditions shall be determined by the
Parliament

 The administrative powers of the CAG shall be prescribed by the president

 Salary, allowances and pensions of CAG office shall be charged upon the
consolidated fund of India.
Duties & powers of CAG:
The duties and functions of the CAG are as:

He/she audits the accounts related to all expenditures from consolidated fund of
India, consolidated fund of each states and UT

He/she audits all expenditures from the contingency fund of India &
contingency fund of each state

 He/she audits all expenditures from the public account of India & public
account of each state

He/she audits all trading, manufacturing, profit & loss accounts, balance sheets
& other subsidiary accounts kept by any department of the central & state
government

He/She audits receipts and expenditures of all bodies and authorities


substantially financed from the central and state revenues
He/She audits receipts and expenditures of government companies

He/She audits receipts and expenditures other corporations and bodies, when so
required by related laws

He/She audits all transactions of the central and state government related to debt,
sinking funds, deposits, advances, suspense accounts and remittance business.

He/she also audits receipts, stock accounts and others of central and state
governments, with approval of the President

He/She audits the accounts of any other authority when requested by the President or
Governor

He advised the President with regard to prescription of the form in which the
accounts of the Centre and state shall be kept (article 150)

He/She submits his audit reports relating to the accounts of the Centre to the
President, who shall , in turn place them before both the houses of Parliament (article
151)
 He/She submits his audit reports relating to the accounts of a state to
governor, who shall , in turn place them before state legislature (artcile
151)

 He/she ascertains & certifies the net proceeds of any tax or duty (article
279). The net proceeds means a duty minus the cost of collection. His/her
certificate is final

 He/she acts as a guide, friend and philosopher of the Public Accounts


Committee of the Parliament

 The CAGR submits three audit reports to the President – audit report on
appropriation accounts, audit report on finance accounts and audit reports
of public undertakings. The President lays these reports before both the
houses of Parliament. After this, these reports are examined by the Public
accounts committee of the Parliament & reports its finding in the
parliament.

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