Parliamentary control over Railway finances
Source:
Chapter 3 - Railways, the Public and Parliament of Indian Railways
Administration & Finance Code Click for the Chapter 3
Key to Remember - PQR DANCER CCC
P - PAC
Q - Questions asked in Parliament
R - RCC
D - Discussions on urgent matters in Parliament
A - Annual Budget
N - NRUCC
C - Cut Motions
E - Estimates Committee
R - References from MPs
C - Committee on Subordinate Legislation
C - Committee on Govt Assurances
C - Committee System - Referring a
particular matter to the Committees
1.
Annual Budget
2.
Estimates committee
3.
Committee on subordinate legislation
4.
NRUCC
5.
Committee on Government assurances
6.
PAC
7.
RCC
8.
References from Members of Parliament
9.
Committee system - Referring a matter (of Railways) to the
committee of Parliament Members
10.
Cut Motions
11.
Questions in the Lok Sabha & the Rajya Sabha A) Starred B)
Unstarred C) Short Notice
12.
Discussion on urgent matters through Adjournment Motion or Calling
Attention notice
1.
Annual Budgetary exercise
·
Under Article 112 (1)
of the Constitution, A statement of the estimated annual receipts and expenditure whether on the Capital segment or on Revenue segment of the
Railways, commonly known as the ' Budget', is laid before both the Houses
of Parliament by the Finance Minister.
·
The proposed expenditure included in the Budget may be—(i) Voted,
or (ii) Charged.
·
Parliament has the power to assent, or to refuse to assent, to any
demand or to assent to any demand subject to a reduction of the amount.
(Cut Motions)
·
If the amount of a grant/appropriation in the budget is found to
be insufficient for the purpose of the current year, an estimate for
supplementary grant /appropriation, is submitted by the Railway Board to
the vote of the Parliament/ sanction of the President.
·
Excess Grants relate to expenditure already incurred, for
reasons to be fully explained, in excess of the grant voted by
Parliament. The demand for an excess grant
is based on the recommendations of the Public Accounts Committee as a result of
their scrutiny of the Appropriation Accounts of the Railways and the Audit
Report of the Comptroller and Auditor General. Excess grants have to be presented after obtaining the
recommendation of the President.
·
Budget allotment: The grants
as voted by the Parliament and the
appropriation for the charged expenditure as
sanctioned by the President, are
distributed by the Railway Board among the railway
administrations and other authorities subordinate to them,
as soon as possible after the Budget is
sanctioned.
·
The allotments made out of funds
voted by the Parliament are shown as
‘Voted’ and those fixed by the President
are shown as ‘Charged’.
·
Budget Orders: The orders by means of
which the allotments are communicated are called "Budget Orders".
·
In the event of the Budget Orders of the Railway Board not being
received before the commencement of the financial year, the railway
administrations are empowered to incur expenditure on works which were in
progress at the end of the previous financial year. All expenditure
incurred under this rule must be treated as a charge against the allotments
eventually made for such works.
·
When the Budget Orders issued by the Railway Board show any
reduction in the estimates originally submitted to them, prompt measures should
be taken by the railway administrations to limit the expenditure to the amounts
allotted by the Railway Board.
·
Budget is operative until the close
of the financial year. Under the ‘doctrine of lapse’, any unspent balance shall lapse and
not be available for utilization in the following year.
2.
Estimates Committee:
·
Consists of 30 Members - all elected from Lok Sabha only
·
Term - One year
·
The members are elected every year from amongst its members of
the Lok
Sabha, according to the
principle of proportional representation by means of single transferable vote. The chairperson is appointed by the Lok Sabha speaker
·
A minister is not eligible to become a member of the committee.
In case a member after his election to the committee becomes a minister, he or
she ceases to be a member from the date of such appointment.
·
Scrutinizing the functioning of Government ministries/departments
including Indian Railways in terms of the expenditure and utilization of funds.
·
Suggests alternative policies in order to bring about efficiency
and economy in administration.
·
It also examines whether the finances are laid out within the
limits of the policy implied in the estimates and also to suggest the form in
which the (Budget) estimates shall be presented to Parliament
·
It is a financial standing committee (PAC too)
·
The committee from time to time selects the
estimates pertaining to a ministry or department of the central government or
such of the statutory and other bodies of the central government as may seem
fit to the committee.
3.
Committee on Subordinate Legislation:
·
Scrutinizes and reports to the House to know whether the powers
are making regulations, rules, sub -rules, by-laws etc. conferred by the
constitution or delegated by the parliament are being properly exercised by the
executive within the scope of such delegation.
·
Consists of 15 Members from both the Houses. (Separate committees
for the Lok Sabha and the Rajya Sabha). Like PAC, it's not a joint committee
·
Term: One year
4.
NRUCC & Etc
·
National Level - NRUCC - National Railway Users Consultative
Council
·
Zonal Level - ZRUCC - Zonal Railway Users Consultative Committee
·
Divisional level - DRUCC - Divisional Railway Users Consultative Committee
·
All the Committees and Council established under these rules are consultative in character.
·
Questions relating to staff, discipline and appointment should not
be brought before the Committees or the Council.
·
Afforded reasonable facilities like Free passes for travel
and Traveling allowance to all Non official members for attending committee
meetings or any other work of the committee.
Objects:
A.
Securing better representation of Railway users.
B.
Affording more frequent opportunities for consultation between
Railways and Users on matters relating to service.
C.
Improving the passenger services.
Functions:
1.
Provision of Passenger amenities
2.
Opening of New stations
3.
Improvement of Passenger services and facilities
·
Members - From Chamber of Commerce, Trade Associations,
Industries Association, Agriculture Association, Handicapped Association,
Registered Passengers association, Consumer Protection Organisation, MLAs,
MPs , Railway Officials etc
5.
Committee on Government Assurances
·
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.
·
Separate Committees . Consists of 15 members in Lok Sabha and 15
members of Rajya Sabha each
·
Term - 1 Year
·
The Chairman is appointed by the Speaker of the Lok Sabha.
However, if the Deputy Speaker is a Member of the Committee, he shall be
appointed Chairman of the Committee.
6.
Public Accounts Committee
Shortly or popularly called as PAC.
·
It is one of the Standing Parliamentary committees in India. Hence
it is under the control of the Speaker of Lok Sabha.
·
The term of office of PAC members is one year only.
·
Total Members should not be more than 22. (15 Members were
from Lok Sabha and 7 Members were from Rajya Sabha)
·
None of the above members shall be a Minister of Government.
If a Member after his election to the PAC is appointed a Minister, he ceases to
be a member of the Committee.
·
The Chairman of PAC is appointed by the Speaker amongst its
members of Lok Sabha. Since 1967, the Chairman of the PAC has been a member of
the Opposition. This practice has been continued since then, though it is
not mandatory.
Functions of PAC
·
Examination of the Appropriation Accounts relating to Railways,
Defense Services, P & T Dept and other civil ministries of the Central
Government.
·
Examination of Reports of CAG on the above Appropriation Accounts.
·
Examination of CAG Report on Revenue Receipts of Government of
India.
·
That the money shown in the Appropriation accounts as having been
disbursed were legally available for and, applicable to the service or purpose
to which they have been applied or charged.
·
That the expenditure conforms to the authority which governs it.
·
That every re-appropriation has been made in accordance with the
provisions made in this behalf under rules framed by competent authority.
·
Normally all the recommendations of the PAC are implemented by the
Government.
Working of the PAC:
·
The representatives of the Ministries like Railways, Defense etc
appear before the PAC when examining the Accounts and Audit (CAG) reports
relating to their ministries.
·
The committee proceeds by way of the INTERROGATION of
witnesses. The CAG is the "friend,
philosopher and guide of the PAC" while
attending the sittings of the Committee and assisting it in its deliberations.
·
The Committee may appoint one or more Sub-Committees/groups to
examine any particular matter.
Govt's Action on PAC recommendations: N R S
·
Stages are 1. Action taken Notes 2. Action taken Report 3. Action taken Statement.
1. Action taken Notes: Govt take action
on the recommendations of the PAC and submit ACTION TAKEN NOTES to the
Committee. At this stage, Responsibility is fixed on Officers. -
Govt to PAC
2.Action taken Report: The PAC then
presents ACTION TAKEN REPORT after considering the views of the
Government. PAC to Govt
3. Action taken statement: The Government further submit an Action TAKEN STATEMENT on
the action taken by the Government on the Action Taken Report of the
committee. Action taken Statement is generally laid before the House
without any further examination by the PAC. Govt to Parliament
·
Normally, almost all the recommendations of the Committee are
implemented by the Government.
7.
RCC - Railway Convention Committee
·
Is an ad hoc Parliamentary committee constituted from time to time
on Resolution adopted by Lok Sabha and concurred in by Rajya Sabha.
·
The appointment and functions of the Railway Convention Committee
is a part of Parliamentary control over Indian Railway Finances.
·
Composition of RCC - Total Members - 18. 12 members from Lok Sabha
nominated by Speaker and 6 Members from Rajya Sabha nominated by Chairman.
·
The Chairman of the Committee is appointed by the Speaker from
amongst the members of the Committee.
·
After Independence, the first RCC was constituted in 1949. Since
then, each Lok Sabha has been having a Railway Convention Committee.
·
The Committee becomes functus officio after presenting its final
Report.
·
After a Report has been presented to the House, the Ministry of
Railways and other concerned Ministries are required to take action on various
observations and recommendations contained in the Report. The replies of the
Government are examined and an ATR- Action Taken Report is then presented to
the House.
·
Is formed once in five years (normally with the formation of New
Loksabha)
·
Its rules are generally applicable for a period of five years.
R C C recommends on the following aspects:
·
Rate of Dividend payable to the General Revenues. (This may not
require now, due to merger of Railway Budget with General Budget from the year
2017-18 onwards )
·
Appropriation to the D.R.F.
·
Modification of rules of expenditure allocation between Capital
and Revenue.
·
How Rly Surplus (after the payment of Dividend) should be
distributed among various Railway Funds.
·
To introduce flexibility in the administration of the Railway
finances.
·
Accounting matters and aspects of Management practices on Railways.
·
Express views on Rolling Stock Production and any short earnings
and how the same should be overcome.
·
And any other subject matter brought to its notice by the Minister
of Railways.
8.
References from Members of Parliament
CA
(iii) References - Confidential Assistant (Grade iii) References
·
Excerpts from
Para 316 of IR Admin & Finance Code: References from Members of
Parliament.—Letters are often addressed by Members of Parliament to the Ministers, Members
of the Railway Board, Genera! Managers and Heads of Departments in
connection with public or staff complaints, etc. The subject matter of such references
should be investigated fully and expeditiously, and reply should be issued in
each case over the signature of the addressee personally. Further, in order that action is
taken in line with the reply issued to a Member of Parliament at the level of
the Minister or the Railway Board, a copy of the reply should be sent to the
Railway Administration.
CA (iii) References - Confidential Assistant (Grade iii) References
CA(iii) reference means letters/representations received by Chairman, Railway Board from very important persons.
CA(iii) references have been classified into five categories as under.
|
Sl.No |
Category |
Letters received from |
|
1 |
Category-A |
All communications received from the President of India,
Vice-President of India, Central Ministers, Ministers from States, MPs,MLAs
& MLCs. |
|
2 |
Category- B |
Letters received from other VIPs like Ex-Central Ministers,
Ex-Ministers from States and Ex-MPs etc |
|
3 |
Category-M |
All communications on which MR/MOSR’s remarks are made |
|
4 |
Category-C |
Letters seen by Private Secretary to MR/MOSR, but not covered
under A,B,M above |
·
Replies to CA (iii) reference should be given on Top priority.
·
GM/DRM/CWM/PHODs should keep close watch on CA(iii) references and
replies should be sent to the Railway Board immediately without delay.
·
If a final reply is likely to take time, an interim reply should
be given.
MPs & VIPs references/Representations:
·
Acknowledgement should be sent under the signature of GM/DRM/CWM
personally to MP/VIP.
·
Action should be taken as per rules on Top priority.
·
Reply should be given to the concerned MP/VIP without fail.
·
If a final reply is likely to take time, an interim reply should
be given.
·
10 to 15 days time is given to complete the process.
·
Every Office should maintain MR/MP/VIP register for close
monitoring and prompt reply within the given time.
9.
Committee system - Referring a matter (of Railways) to the committee
of Parliament Members
10.
Cut Motions
·
Part of Parliamentary control over Railway Finances.
·
A special power vested in Members of Lok Sabha to reduce any
Demand for Grant
·
Exercised while discussing the Demands for Grants
·
Consequence: If the Cut Motion is
adopted, it amounts to no-confidence Vote. If the Govt fails to jot up the
numbers in Lok Sabha, it is obliged to resign according to the norms of the
House.
·
The decision to accept a Cut Motion relies solely on the Speaker
of the Lok Sabha as per Rules in force.
·
Members can also table notices in electronic form through e-portal
specially developed for the purpose.
Types:
1.
Disapproval of Policy Cut: Demand is reduced to Rupee One.
2. Economic
Cut: Reduction of Demand for Grant to a specific amount.
3. Token Cut: The amount of the Demand is reduced by
just Rs. 100. This is to ventilate the specific grievance
/displeasure against the Government .
Examples:
11.
Questions in the Lok Sabha & the Rajya Sabha
·
Any Member of Parliament may ask a question for the purpose
of obtaining information on a matter of public importance.
·
Starred Questions -A Starred Question is one
to which a member desires an oral answer from the Minister in the House and is
required to be distinguished by him/her with an asterisk*. Answers to such a
question may be followed by supplementary questions by members.
·
Unstarred Questions- An Unstarred Question is
one to which a written answer is desired by the member and is deemed to be laid
on the Table of the House by the Minister. Thus it is not called for oral
answer in the House and no supplementary question can be asked thereon.
·
Short Notice Questions- A member may give a
notice of question on a matter of public importance and of urgent character for
oral answer at a notice less than 10 days prescribed as the minimum period of
notice for asking a question in ordinary course. Such a question is known as
‘Short Notice Question’.
12.
Discussion on a definite matter of urgent public
importance may be sought by a Member through an Adjournment Motion or a Calling
Attention Notice.
Summary of Parliamentary Committees
Key takeaways for MCQ
1.
Article 112(1) of Constitution of India - “Annual Financial
Statement” popularly called as Annual Budget - Statement of the estimated
receipts and expenditure of the Government of India.
2.
Budget Allotment: The grants as voted
by the Parliament and the appropriation for
the charged expenditure as sanctioned by
the President, are distributed by the Railway
Board among the railway administrations and other authorities
subordinate to them.
3.
Budget Orders - The Budget allotments (Grants)
communicated are called "Budget Orders".
4.
Doctrine of Lapse: Budget is operative until the
close of the financial year and any unspent
balance shall lapse and not be available for
utilization in the following year.
5.
Proposed expenditure under Budget - Two types: 1. Voted
expenditure 2. Charged Expenditure
6.
Demand for an Excess Grant: Actual expenditure incurred in excess
of Grant voted by the Parliament will be regularised by:
·
Reasons to be fully explained by the spending authorities.
·
On the recommendation of PAC as a result of scrutiny of
Appropriation Accounts of Railways and Audit Report of CA&G.
·
Presented after obtaining the recommendation of the President of
india.
7.
PAC stands for Public Accounts Committee
8.
Term of PAC Members - 1 Year
9.
PAC Total Members - 22 (Lok Sabha - 15 and Rajya Sabha - 7)
10.
PAC Chairman - Appointed by the Speaker of Lok Sabha amongst the
Lok Sabha Members. Since, 1967, Chairman of the PAC - from Opposition party
members. However it is not mandatory.
11.
The representatives of the Ministries like Railways, Defense etc
appear before the PAC when examining Appropriation Accounts of respective
ministries.
12.
The CAG is the "friend, philosopher and guide of the
PAC".
13.
Stages are 1. Action taken Notes 2. Action taken Report 3. Action taken Statement. Key word: NRS
14.
RCC stands for Railway Convention Committee
15.
RCC - Adhoc Parliamentary Committee
16.
RCC - Total members 18 (Lok Sabha - 12 and Rajya Sabha -6)
17.
First RCC - 1949
18.
RCC - once in 5 years
19.
RCC recommends A. Appropriation to DRF and distribution of Surplus
among various Railway Funds, B. Rules of allocation between Capital and
Revenue;etc.,
20.
NRUCC stands for National Railway Users Consultative Council
21.
ZRUCC stands for Zonal Railway Userrs Consultative Committee
22.
DRUCC stands for Divisional Railway Users Consultative Committee
23.
The above Committees and Council - Consultative in character
24.
NRUCC Chairman - Minister for Railways
25.
ZRUCC Chairman - GM
26.
DRUCC Chairman - DRM
27.
Tenure of NRUCC, ZRUCC & DRUCC - 2 years.
28.
Estimates Committee - 30 Members - all from Lok Sabha only
29.
Estimates Committee - Standing Committee
30.
Estimates committee - tenure - 1 year
31.
Committee on Subordinate legislation - 15 Members from Lok
Sabha - Separate committee and 15 Members from Rajya Sabha - Separate
committee (unlike joint committees like PAC and RCC)
32.
Committee and Subordinate Legislation - Tenure - One Year
33.
Cut Motions - 3 types (A.Disapproval of Policy Cut B.Economic Cut
C.Token Cut)
34.
Consequence: If the Cut Motion is adopted, it amounts to
no-confidence Vote. If the Govt fails to jot up the numbers in Lok Sabha, it is
obliged to resign according to the norms of the House.
35.
Disapproval of Policy Cut: Demand is reduced to Rupee One.
36.
Economic Cut: Reduction of Demand for Grant to a specific
amount.
37.
Token Cut: The amount of the Demand is reduced by just Rs.
100. This is to ventilate the specific grievance /displeasure.
38.
Starred question - Reply should be by Oral answer from the
Minister in the House. And followed by Supplementary Questions by the
Member. Distinguished with an Asterisk.
39.
Unstarred Questions- Reply should be by Written answer - laid on table of the House
by the Minister. Thus it is not called for oral answer in the House and no supplementary
question can be asked thereon.
40.
Short Notice Questions- Notice of 10 days Minimum period. Oral answer. Matter of
public importance and of urgent character. question is known as ‘Short Notice
Question’.
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