ESTIMATES COMMITTEE PLATINUM JUBILEE

ESTIMATES COMMITTEE PLATINUM JUBILEE

Why in News?

• On June 23, 2025, Lok Sabha Speaker Om Birla inaugurated a national conference in Mumbai marking the platinum jubilee (75 years) of the Parliamentary Estimates
• He called for enhanced use of technology, data analysis, and citizen engagement to strengthen legislative financial oversight.

ROLE & SIGNIFICANCE

• Fiscal Watchdog: The Estimates Committee serves as a crucial parliamentary committee responsible for scrutinizing the budget estimates of the Union Government and promoting economy and efficiency in public expenditure.
• 75 Years of Impact:
  • Constituted for the first time in 1950, the committee has completed 75 years of its formation.
  • It has submitted over 1,000 reports since its inception, significantly influencing national policies across vital sectors like health, education, infrastructure, and defence.
  • Real-world Impact Example: Speaker Birla cited the committee’s report on Electric Vehicle policy during the 17th Lok Sabha, which led to tangible outcomes like tax rebates and state-level road tax waivers.
  • “Continuous Economy Committee”: Often referred to by this name due to its ongoing efforts to identify ways to achieve economy in government expenditure and improve administrative efficiency.

BEYOND FISCAL OVERSIGHT

• Maharashtra Chief Minister highlighted its role as a “democratic tool that shapes government functioning,” noting that 65-70% of the committee’s recommendations are implemented in Maharashtra.
• Maharashtra Assembly Speaker linked its work to social justice and fiscal responsibility, stating that its recommendations reflect the constitutional obligation to promote inclusive and balanced development.

COMPOSITION & FUNCTIONING

• Composition:
  • A parliamentary committee consisting of 30 members.
  • All members are elected every year by the Lok Sabha (lower house of Parliament) from amongst its members, using the principle of proportional representation by means of a single transferable vote.
  • No Rajya Sabha Representation: Unlike some other parliamentary committees, the Estimates Committee does not have members from the Rajya Sabha.
  • Chairperson: Appointed by the Lok Sabha Speaker from amongst its members.
  • Ministerial Prohibition: A Minister cannot be elected as a member of the Committee.
    • If a member is appointed a Minister after selection to the Committee, they cease to be a member from the date of such appointment.
  • Term: The term of office for the Committee is one year.

OBJECTIVES

• Its primary objective is to examine budget estimates and:
  • Economy & Efficiency: Report on economies, organizational improvements, efficiency gains, or administrative reforms consistent with the policy underlying the estimates.
  • Alternative Policies: Suggest alternative policies to enhance efficiency and economy in administration.
  • Prudent Spending: Examine whether money is well spent within the limits of the policy implied in the estimates.
  • Presentation Format: Suggest the form in which estimates should be presented to Parliament for clarity and transparency.
  • Continuous Examination: The Committee can continue examining estimates throughout the financial year and report its findings as the examination proceeds.
  • No Mandate to Examine Entire Budget: It is not mandatory for the Committee to examine the entire estimates of any single year.
  • Non-Binding Recommendations: Its recommendations are advisory in nature and not binding on the Parliament or the government.
  • Exclusion from Public Undertakings: The Committee does not examine Public Undertakings; this function is allotted to the Committee on Public Undertakings.

WORKING PROCESS

• Selection of Subjects: After its constitution, the Committee selects specific budget estimates pertaining to Ministries/Departments or statutory/other central government bodies for examination.
• It also examines matters of special interest referred by the House or the Speaker.
• Information Gathering: Calls for preliminary materials from concerned Ministries/Departments and memoranda from non-officials.
• Sub-Committees/Study Groups: Appoints sub-committees or study groups for detailed examinations.
• Study Visits: Conducts on-the-spot studies with Speaker’s approval, holding informal sittings during visits.
• Evidence Sessions: Invites official and non-official witnesses to give evidence at formal sittings in Parliament.
• Reporting: Observations and recommendations are embodied in Reports presented to the Lok Sabha.
• Government Action: The concerned Ministry/Department must take action on recommendations within six months or as directed.
• Action Taken Reports (ATRs): Government replies are examined by the Committee, and an Action Taken Report is presented to the Lok Sabha. Replies to ATRs are then laid on the Table of the Lok Sabha as Statements.

CALL FOR STRONGER FISCAL OVERSIGHT

• Modernization: Speaker Om Birla emphasized the need to enhance fiscal oversight through:
  • Technology Integration: Increased use of digital tools.
  • Data Analysis: Leveraging data analytics platforms.
  • Artificial Intelligence (AI): Incorporating AI for in-depth scrutiny and evidence-based recommendations.
  • Citizen Engagement: Greater involvement of citizens to make oversight more effective and future-ready.
• Institutional Synergy: Birla stressed that the Estimates Committee’s role extends beyond mere expenditure monitoring to ensuring that welfare schemes are relevant, accessible, and effective for the common citizen, focusing on social justice and welfare.

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