This article is part of the UPSC Daily Editorial Analysis, covering The Hindu editorial –  “India’s Marginalised Parliament in Budgetary Affairs," published on 22^nd March, by the best UPSC coaching in Kolkata.

Syllabus: Indian Polity and Governance (Parliamentary Oversight & Budgeting Process) in UPSC GS Paper 2.

What is in News?

The Union Budget is not merely a financial statement. It mainly reflects a nation’s priorities, governance philosophy and economic vision. In a democracy, the power to control public money should rest with the elected representatives. However, in India the Parliament has a minimal role in shaping the Budget as the process is majorly executive-driven.

To strengthen parliamentary oversight, two key reforms are needed:

• Pre-Budget discussions to allow MPs to influence policies before the Budget is finalized.
• A Parliamentary Budget Office (PBO) to provide independent financial analysis and data-driven insights.

Why Budgeting is a Key Democratic Process

Budgeting is one of the most important functions of a democracy. It determines how public money is spent, which sectors get priority and how economic growth is planned. Historically, legislatures across the world have fought for their right to control public finances.

In many countries, parliaments actively shape, modify and scrutinize budget proposals. Some hold in-depth committee discussions. But others act as mere rubber stamps. However, one thing is clear—greater parliamentary engagement leads to better governance, transparency and economic stability.

The Limited Role of Parliament in Budget-Making

In India Parliament has a weak role in Budget-making due to a number of reason as given below:

• Budget prepared solely by the Finance Ministry – Even Cabinet Ministers are unaware of the full details until it is presented in Parliament.
• No in-depth Cabinet discussion – Unlike other Bills, the Budget is not debated thoroughly within the government before being introduced in Parliament.
• No role for the Rajya Sabha – The upper house does not have any real power over Budget discussions, even though India allows a Finance Minister to be a Rajya Sabha member.
• Superficial parliamentary debates – MPs cannot make major amendments and discussions are often rushed, reducing Parliament to a mere approver of government proposals.

All these weak oversights reduce transparency and it allows the executive to dominate financial decision-making as well.

Need for Pre-Budget Discussions

In order to strengthen the role of Parliament Pre-Budget, discussions should be introduced during the monsoon session. A dedicated 5–7-day discussion period would---

• Allow MPs to assess the economy and suggest priorities.
• Improve coordination among parliamentary committees.
• Plus, ensure public participation in the Budget process, making it more transparent.

Pre-Budget debates would ensure that public concerns are addressed and Budget reflects the real needs of the people.

Concerns About Legislative Oversight

Some critics argue that giving Parliament more power over the Budget could lead to populist spending. It might lead to financial mismanagement as well. However, blindly trusting the executive to act in the public interest is unrealistic.

A balanced approach is needed, where:

• The executive retains the power to plan and implement the Budget.
• Parliament ensures accountability, transparency and fairness in financial decisions.

Thus a stronger role for Parliament in budgeting would make the process more democratic as well as responsible.

Why India Needs a Parliamentary Budget Office (PBO)

India lacks an independent institution that provides non-partisan Budget analysis to MPs. A Parliamentary Budget Office (PBO) would:

• Offer data-driven insights on government spending and revenue.
• Conduct economic forecasts and analyze fiscal policies.
• Provide policy briefs to help MPs make informed decisions.

Many countries like U.S., Canada, Australia and the UK, have similar institutions that help legislators understand and question financial policies effectively.

A well-structured PBO in India would strengthen financial oversight and lead to evidence-based policymaking.

Reforming the Budget Process for Stronger Democracy

The present Budget process sidelines the Parliament now. The Budget reduces its ability to represent the people in a more effective manner. So by implementing reforms like Pre-Budget discussions and a PBO the Parliament----

- can play an active role in shaping financial policies;

- can ensure greater transparency and accountability in Budget decisions and,

- it can help create more balanced and people-centric economic policies. 

A stronger parliamentary role in budgeting is not just a technical reform- It is now essential for a more democratic and responsible governance framework. 

PRACTICE QUESTION Q.India's Budget process is executive-driven, limiting parliamentary oversight. Critically analyse.

1. Why is the Union Budget more than a financial statement?

It reflects national priorities, governance philosophy and economic vision, shaping public spending and growth.

2. Why does Parliament have a limited role in Budget-making?

The Finance Ministry controls Budget preparation, with minimal Cabinet discussions and rushed parliamentary debates, reducing oversight.

3. Why are Pre-Budget discussions needed?

They allow MPs to influence policies, assess economic priorities and improve transparency in financial decisions.

4. What is a Parliamentary Budget Office (PBO)?

A PBO provides independent budget analysis, economic forecasts and fiscal insights, strengthening parliamentary oversight.

5. How would these reforms improve Budget transparency?

Pre-Budget discussions and a PBO ensure greater accountability, transparency and public participation in financial decisions.