Question

Discuss briefly how the parliament controls budget finances.

Answer 1

Parliament controls budget finances through several mechanisms at different stages:

1. Authorization of revenue and expenditure: Parliament first authorizes the government to collect revenue and spend money by passing two key bills, the finance bill and the appropriation bill. This gives parliament the authority to sanction appropriations from the consolidated fund.
2. Discussion and approval: The budget is presented in parliament, where members actively participate in discussions on the revenue and expenditure proposals. Demands for grants (expenditure estimates for various departments) are voted on by parliament, giving it control over the allocation of funds.
3. Oversight through committees: Parliament maintains oversight over budget implementation through three financial committees:
   • Public accounts committee: Examines audit reports by the Comptroller and Auditor General (CAG) to ensure money has been spent for the purposes approved and investigates any excess expenditure or irregularities.
   • Estimates committee: Ensures public expenditure is used judiciously by examining estimates, reviewing expenditure performance, and suggesting improvements or reforms.
   • Committee on public undertakings: Scrutinizes reports and accounts of public sector undertakings and CAG reports on them, recommending organizational and managerial improvements.