Estimates Committee
The Estimates Committee is one of the three major Financial Committees of the Parliament. It examines the estimates included in the Union Budget and suggests measures to achieve economy and efficiency in government expenditure.
Unlike the Public Accounts Committee, which primarily examines expenditure after it has been incurred, the Estimates Committee focuses on examining budget estimates and suggesting improvements in the organisation, efficiency and administration of government activities.
Genesis of the Estimates Committee
- The origin of the Estimates Committee can be traced to the Standing Financial Committee established in 1921.
- The first Estimates Committee in independent India was constituted in 1950, on the recommendation of John Mathai, the then Finance Minister.
- Initially, the Committee consisted of 25 members. Its membership was subsequently increased to 30 members in 1956.
Constitution and Composition of the Estimates Committee
- The Estimates Committee consists of 30 members, all of whom are drawn from the Lok Sabha.
- Thus, unlike the Public Accounts Committee and the Committee on Public Undertakings, the Rajya Sabha has no representation in the Estimates Committee.
- The members are elected every year by the Lok Sabha from among its members according to the principle of proportional representation by means of the single transferable vote.This system ensures representation of different political parties in the Committee.
Term of Office
The term of office of the members of the Estimates Committee is one year.
Ministers and Membership
- A Minister cannot be elected as a member of the Estimates Committee.
- If a member of the Committee is subsequently appointed as a Minister, the person ceases to be a member of the Committee from the date of such appointment.
Chairperson
- The Chairperson of the Estimates Committee is appointed by the Speaker of the Lok Sabha from among the members of the Committee.The Chairperson is generally from the ruling party.
- Unlike the Public Accounts Committee, there is no convention that the Chairperson of the Estimates Committee must belong to the Opposition.
Scope and Functions of the Estimates Committee
The Estimates Committee examines the estimates included in the Budget and reports on measures that can be adopted to improve the efficiency and economy of government administration.
The functions of the Estimates Committee are:
- to report what economies, improvements in organisation, efficiency or administrative reform, consistent with the policy underlying the estimates may be effected;
- to suggest alternative policies in order to bring about efficiency and economy in administration;
- to examine whether the money is well laid out within the limits of the policy implied in the estimates; and
- to suggest the form in which the estimates shall be presented to Parliament.
Examination of Estimates
- The Estimates Committee does not examine matters relating to Public Undertakings that have been specifically assigned to the Committee on Public Undertakings (COPU) under the Rules of Procedure and Conduct of Business in Lok Sabha or by the Speaker.
- The Estimates Committee may examine budget estimates throughout the financial year and submit reports to the Lok Sabha as its examination progresses.It is not necessary for the Committee to examine the entire budget estimates of a financial year. Parliament can proceed with the voting of the Demands for Grants even if the Committee has not submitted its report on them.
Limitations of the Estimates Committee
The effectiveness of the Estimates Committee is limited by several factors:
- It examines budget estimates only after they have been voted by Parliament, rather than before approval.
- Its recommendations are advisory in nature and are not binding on ministries or departments.
- It cannot question the policy laid down by Parliament.
- It examines only selected ministries and departments each year. As a result, complete coverage takes place gradually over several years.
- Unlike the Public Accounts Committee, it does not receive expert assistance from the CAG.
Working of the Estimates Committee
Soon after its constitution, the Estimates Committee selects specific Ministries, Departments, statutory bodies or other organisations of the Central Government for detailed examination.
It may also take up:
- Matters of special importance that arise during the course of its work.
- Issues specifically referred to it by the Lok Sabha or the Speaker.
Collection of Preliminary Information
For the subjects selected for examination, the Committee calls for relevant background material from the concerned:
- Ministries and Departments
- Statutory bodies
- Other government organisations
It may also seek memoranda or inputs from non-official persons and organisations connected with the subject under examination.
Sub-Committees and Study Groups
- For a more detailed examination of particular subjects, the Committee may constitute one or more Sub-Committees or Study Groups.
- These groups assist in studying specific issues in greater depth.
Study Visits
- Where necessary, the Committee may undertake on-the-spot study visits to particular projects, institutions or establishments.
- Such visits require the approval of the Speaker and may be undertaken either by:
- The entire Committee, or
- Separate Study Groups constituted from among its members.
- Relevant background notes and information are obtained in advance from the concerned Ministries or Departments and circulated among the members.
- During such study visits, the Committee holds only informal discussions. No formal evidence is recorded and no final decisions are taken during these visits.
- The discussions held during such visits are treated as confidential.
Formal Examination of Witnesses
- After considering information gathered through study visits, official records, memoranda and other sources, the Committee may invite official and non-official witnesses to provide evidence.
- Such formal sittings are generally held in the Parliament House Complex, New Delhi.
Submission of Reports
- The findings, observations and recommendations of the Committee are incorporated in its reports, which are presented to the Lok Sabha.
Action Taken by the Government
- After a report is presented to the Lok Sabha, the concerned Ministry or Department is required to take action on the Committee’s observations and recommendations, generally within six months or within the period specified by the Committee.
- The government’s replies are then examined by the Committee.
- Based on this examination, the Committee presents an Action Taken Report to the Lok Sabha.
- Further government replies to the recommendations contained in the Action Taken Report are subsequently placed before the Lok Sabha in the form of statements.
FAQs
1. What is the Estimates Committee?
The Estimates Committee is a Financial Committee of Parliament that examines the estimates included in the Union Budget and recommends measures to improve economy, efficiency and administrative performance.
2. When was the Estimates Committee constituted?
The first Estimates Committee in independent India was constituted in 1950 on the recommendation of John Mathai, the then Finance Minister.
3. What is the origin of the Estimates Committee?
Its origin can be traced to the Standing Financial Committee established in 1921.
4. How many members are there in the Estimates Committee?
The Committee consists of 30 members, all drawn from the Lok Sabha.
5. Does the Rajya Sabha have representation in the Estimates Committee?
No. Unlike the Public Accounts Committee and the Committee on Public Undertakings, the Rajya Sabha has no representation in the Estimates Committee.
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