Parliamentary control over Railway
finances
301. Parliamentary control on Railways.—The control of Parliament over railway finance and policy is exercised as follows :—
(a) through periodical examination, generally every five years, of the working of the Railways by the Railway Convention Committee to review inter alia the rate of dividend payable by the Railway undertaking to the general revenues. (For details, please see Chapter VII) ;
(b) through the Estimates Committee which examines such of the estimates as it may deem fit or are specifically referred to it by Parliament ;
(c) (i) by means of interpellations, resolutions, and discussions when the Budget is presented, and the railway demands are voted upon ;
(ii) through the Members of Parliament serving on the National Railway Users Consultative Council ;
(iii) through the Public Accounts Committee which examines the accounts showing appropriation of sums granted by the Parliament for the expenditure of the Government of India, the annual finance accounts of the Government of India and such other accounts laid before the Parliament as the Committee may think fit ; and
(d) (i) through the Committee on Subordinate Legislation which scrutinises an reports to Parliament whether the powers to make regulations, rules, sub-rules, bye-laws, etc., conferred by the Constitution or delegated by Parliament are being properly exercised within such delegation;
(ii) through the Committee on Government Assurances which scrutinises whether the assurances, promises, undertakings, etc,, given by Ministers from time-to-time, on the floor of the Lok Sabha and the Rajya Sabha, have been implemented within the minimum time necessary for the purpose.
In addition, any Member of Parliament may address the Ministry of Railways (Railway Board) or a Railway Administration on any matter concerning railway working. Member may also ask questions in both the Houses of Parliament on issues connected with the Railways.
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 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 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 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)
● Term:
One year
4. NRUCC
● 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 Travelling
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 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
|
|
NRUCC |
ZRUCC |
DRUCC |
|
Full
form |
National
Railway Users Consultative Council |
Zonal
Railway Users Consultative Committee |
Divisional
Railway Users Consultative Committee |
|
Chairman |
Minister
for Railways |
GM |
DRM |
|
Secretary |
Director,
Traffic Commercial (General) II |
Secretary
to GM or any other officer nominated by GM |
Sr.Traffic
Officer (Sr.DOM /Sr.DCM) |
|
Tenure |
2
years |
2
years |
2
years |
|
Tenure
commenced from |
July |
April |
January |
|
No
of times - Meet |
2
times |
3
times |
Not
less than 3 times |
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.
● Consists of 15 members in Lok
Sabha.
● Term
- 1 Year
● 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. PAC
● Shortly
or popularly called as PAC and was constituted in 1921.
● It
is one of the Standing Parliamentary Committees in India. Hence it is under the
control of 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
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 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 INTERROGATION of witnesses. The CAG is
the "friend, philosopher and guide of the PAC" while attends the
sittings of the Committee and assists 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:
● 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.
2.Action
taken Report: The PAC then presents ACTION TAKEN REPORT after
considering the views of Government.
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.
● Normally,
almost all the recommendations of the Committee are implemented by the
Government.
7. RCC
is
an ad hoc Parliamentary committee constituted from time to time on Resolution
adopted by Lok Sabha and concurred in by Rajya Sabha.
Þ The
appointment and functions of Railway Convention Committee is a part of
Parliamentary control over Indian Railway Finances.
Þ Composition
of RCC 18 members - 12
members from Lok Sabha nominated by Speaker and 6 Members from Rajya Sabha
nominated by Chairman.
Þ The
Chairman of the Committee is appointed by the Speaker from amongst the members
of the Committee.
Þ After
Independence, first RCC constituted in the year 1949. Since then, each Lok
Sabha has been having a Railway Convention Committee.
Þ The
Committee becomes functus officio after presenting its final Report regarding
rate of dividend payable to General Revenues.
Þ The
Report of the Committee on the Rate of Dividend is considered by the House on a
Resolution moved by the Minister of Railways.
Þ 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.
Þ is
formed once in five years
(normally with the formation of New Loksabha)
Þ Its
rules generally applicable for a period of five years.
R
C C recommends on the following aspects:
ü
Rate of Dividend payable to the General Revenues. (This may not require now,
due to merger of Railway Budget with General Budget)
ü
Appropriation to the D.R.F.
ü
Modification of rules of expenditure allocation between Capital and Revenue.
ü
How Rly Surplus (after the payment of Dividend) should be distributed among
various Railway Funds.
ü
To introduce flexibility in the administration of the Railway finances.
ü
Accounting matters and aspects of Management practices on Railways.
ü
Express views on Rolling Stock Production and any short earnings and how the
same should be overcome.
ü
And any other subject matter brought to its notice by the Minister of Railways.
8. References
from Members of Parliament :
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
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.
≠ Examples:
|
Type of Cut |
Demand for Grant proposed |
Amount of Cut |
Demand for Grant passed |
Remarks |
|
Disapproval Policy Cut |
Rs. 1,00,000 |
Rs. 99,999 |
Re 1 |
Here agreeing the amount always Re 1 only. |
|
Economic Cut |
Rs. 1,00,000 |
Rs. 30,000 |
Rs. 70,000 |
Any amount of cut. That is either Rs. 30,000 or any specific amount within Rs. 1,00,000 |
|
Token Cut |
Rs. 1,00,000 |
Rs. 100 |
Rs. 99,900 |
Here, the amount of cut always Rs. 100 being Token. |
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.
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
Table
|
Committee |
Tenure (years) |
Total Members |
Lok Sabha |
Rajya Sabha |
Type of Committee |
|
Estimates |
1 |
30 |
30 |
Nil |
Standing |
|
PAC |
1 |
22 |
15 |
7 |
Standing |
|
RCC |
5 |
18 |
12 |
6 |
Ad hoc |
|
Subordinate Legislations both the Houses |
1 |
15 |
15 |
15 |
Standing - Separate committees |
|
Govt. Assurances |
1 |
15 |
15 |
15 |
Separate committees |
-:0:-
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