The Lok Sabha Speaker recently inaugurated a national conference commemorating the 75th anniversary (Platinum Jubilee) of the Parliamentary Estimates Committee at the Vidhan Bhavan complex in Mumbai. This occasion highlights the critical role this committee plays in strengthening India’s financial oversight mechanisms.
Historical Background
The Estimates Committee was established for the first time in 1950, shortly after India adopted its Constitution. It is one of the three major financial standing committees of Parliament, the other two being the Public Accounts Committee (PAC) and the Committee on Public Undertakings (COPU).
Composition Of Committee
The Estimates Committee consists of 30 members, all of whom are elected annually from among the Lok Sabha members.
The Chairperson of the committee is appointed by the Speaker of the Lok Sabha.
Ministers are not eligible for committee membership. If a member is appointed a minister after being elected to the committee, they automatically cease to be a member.
The tenure of the committee is one year.
Key Functions And Responsibilities
The main function of the Estimates Committee is to examine the budget estimates presented by the Union Government and suggest measures to ensure economy, efficiency, and administrative reforms. The committee focuses on the following:
Evaluating Budget Estimates - It assesses how effectively the funds allocated in the budget are being utilized, in line with government policy objectives.
Recommending Savings and Reforms - The committee suggests ways to reduce wasteful expenditure, streamline administrative processes, and improve financial efficiency.
Proposing Alternative Strategies - It can recommend alternative policy frameworks to achieve the same or better outcomes at lower costs.
Monitoring Financial Effectiveness - It evaluates whether funds are spent in a manner that aligns with the intended purpose and policy goals.
Improving Budget Presentation - The committee also suggests modifications in the format or structure of how budget estimates are presented to Parliament to improve clarity and understanding.
Operational Scope And Limitations
The Estimates Committee may choose to examine only select ministries or departments in a given financial year; it is not mandatory to review all budget estimates each year.
The Demands for Grants can be passed in the Lok Sabha even if the committee has not submitted its report on a particular ministry.
The committee’s jurisdiction excludes Public Sector Undertakings (PSUs), as these are under the purview of the Committee on Public Undertakings.
Working Mechanism
Once constituted, the committee:
Selects ministries or departments whose estimates it will scrutinize.
May form sub-committees or study groups for in-depth examination of particular subjects.
Conducts field visits, engages with stakeholders, and collects expert opinions to prepare its findings.
Submits comprehensive reports to the Lok Sabha based on its evaluations.
Follow-Up And Government Accountability
Ministries are required to respond to the committee's observations and recommendations within six months, or within the time frame specified by the committee.
The committee evaluates the government's responses and prepares an Action Taken Report, which is also presented to the Lok Sabha.
Any further replies to this report are tabled in the House in the form of official Statements, ensuring continuous monitoring and accountability.
Conclusion
The Estimates Committee of Parliament plays a pivotal role in upholding fiscal discipline, promoting transparency, and suggesting systemic reforms in government functioning. As it celebrates its platinum jubilee, its contributions underscore the importance of legislative oversight in shaping an efficient, responsible, and accountable administrative system.
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