Parliamentary
control over Railway finances
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 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.
●
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 - 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.
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
|
1
|
15
|
15
|
15
|
Standing -
Separate
committees
|
Govt Assurances
|
1
|
15
|
15
|
15
|
Separate
committees
|
&&&&&&&&