Editorial 1: India’s marginalised Parliament in budgetary affairs

Context

The current budgetary process limits the influence of elected representatives, weakening democratic accountability.

Introduction

The Budget is more than just numbers; it shows a country’s priorities, economic plans, and way of governing. In many democracies, parliaments have a big role in deciding how money is spent, keeping finances in check, and ensuring transparency. But in India, Parliament has very little say in the Budget. The government controls the process, and lawmakers have little chance to review or influence financial decisions. To change this, Parliament must go beyond just approving the government’s financial plans and take an active role in shaping economic policies. This requires key reforms, such as holding discussions before the Budget and setting up a Parliamentary Budget Office (PBO).

The Budget, a pillar of democracy

• Budgeting is a key democratic process that distributes public money and sets government priorities.
• Across history, legislatures have fought to gain control over public finances to prevent excessive executive power.
• Example:
  • 19th-century Britain: Parliament gained financial control to limit the monarchy’s power.
  • Modern democracies: Parliaments oversee budgets to ensure transparency and fiscal responsibility.

Legislative Influence on Budgets Worldwide

Level of Influence	Description
High Influence	Parliaments actively draft and modify budgets.
Moderate Influence	In-depth committee discussions shape budget decisions.
Low Influence	Legislatures mainly approve budgets with minimal changes.

• Key Insight: Greater transparency and parliamentary involvement lead to better social outcomes and economic stability.

Budgeting in India: A Limited Role for Parliament

• Parliament’s involvement in budget formulation is mostly symbolic.
• The Finance Ministry alone prepares the Budget, keeping even Cabinet Ministers in the dark until its presentation.
• Unlike other bills, the Budget is not debated thoroughly in the Cabinet before being introduced in Parliament.
• Result: Weak legislative oversight and fragmented discussions.

Rajya Sabha’s Limited Role

Aspect	Rajya Sabha	House of Lords (UK)
Budget Discussion	Minimal role	Some influence despite being unelected
Finance Minister’s Vote	Cannot vote on their own Budget	Not applicable

• Irony: India allows a Finance Minister to be from Rajya Sabha, yet they cannot vote on the Budget in Lok Sabha.
• Contrast with the UK: The unelected House of Lords has more say in financial legislation than India’s upper house.

Weakening Parliamentary Authority Over Budgets

• Budget debates in Parliament are brief and lack depth.
• Parliamentary committees have limited impact on financial oversight.
• MPs cannot amend or significantly influence budget proposals.
• Conclusion: This weakens democracy and reduces government accountability.
• The Need for Reform: Parliament must play a stronger role in budgeting to uphold democratic principles and ensure financial transparency.

Pre-Budget discussions

• To restore Parliament’s influence in the Budget-making process, two critical reforms are needed:
  • Pre-Budget Discussions
  • Establishment of a Parliamentary Budget Office (PBO)

1. Institutionalising Pre-Budget Discussions

Parameter	Function
Timing	Monsoon session (5-7 days of dedicated discussions)
Purpose	Assess fiscal health, outline Budget priorities, and present economic frameworks
Benefits	– Encourages better coordination among committees

• Strengthens parliamentary input in budgeting
• Enhances public involvement and transparency |
• Why It’s Important:
  • Democratizes the Budget-making process.
  • Allows MPs to voice public concerns and suggest fair resource allocation.
  • Promotes trust in financial governance.

2. Establishing a Parliamentary Budget Office (PBO)

Function	Role of PBO
Economic Analysis	Conducts independent forecasts on revenue and expenditure
Policy Evaluation	Assesses fiscal impact of government proposals
Research Support	Provides data-driven insights to MPs for informed decision-making
Global Models	Inspired by the U.S. Congressional Budget Office, and similar bodies in Canada, Australia, and the UK

• Why It’s Needed:
  • Currently, Indian legislators lack access to independent, non-partisan budget analysis.
  • A PBO would ensure that government spending and policies are evaluated based on data, not just executive claims.
  • Rather than reducing executive authority, it would enhance financial scrutiny and accountability.

Addressing Concerns About Fiscal Discipline

• Some fear that increasing legislative influence may lead to populist spending.
• However, relying entirely on the executive for financial prudence is unrealistic.
• Balanced Approach:
  • The executive retains discretion but remains answerable to Parliament.
  • This ensures economic justice and transparency in governance.
• Governance: Implementing these reforms would transform Parliament from a passive Budget approver into an active participant in financial planning. A stronger legislative role in budgeting would lead to:
• More transparent governance
  • Better economic policies based on research
  • Stronger accountability to the public

Conclusion: Reclaiming parliamentary authority

The way the budget is currently decided reduces the power of elected representatives, making the process less democratic. By including discussions before the Budget and creating a Parliamentary Budget Office (PBO), Parliament can have a bigger role in shaping financial decisions instead of just approving them. These changes are not just technical fixes but important steps toward a stronger democracy. They would make sure public money is managed through collective decision-making rather than by the government alone. A more involved Parliament in budgeting would lead to fairer economic policies, greater transparency, and a financial system that truly benefits the people.

Editorial 2: Charting a route for IORA under India’s chairship 

Context

New Delhi must strengthen the foundation for meaningful and ground-level governance.

Introduction

The Indian Ocean Rim Association (IORA) is a top regional group that encourages cooperation among countries in Asia, Africa, and Australia connected by the Indian Ocean. India, currently the Vice-Chair, will take over as Chair in November 2025. During its two-year leadership, India will focus on three main goals: increasing funding for IORA, using technology for better data and policy-making, and developing maritime-related courses through academic collaborations.

The Indian Ocean Region and IORA

• Region: The Indian Ocean Region (IOR) is part of the Indo-Pacific but has unique importance.
• Population: Home to two-thirds of the world’s people, with rich marine life.
• Trade: Handles 75% of global trade and 50% of daily oil supply.
• Economy: Contributes $1 trillion in goods/services; intra-IORA trade was $800 billion in 2023.
• Challenges: Faces underdevelopment, political instability, climate disasters, and environmental damage.
• Security: Threatened by piracy, terrorism, human trafficking, and drug smuggling.
• Cooperation: Countries must work together to solve regional issues.
• IORA’s Role: Promotes cultural exchange, academic collaboration, and disaster management.
• Global Partners: U.S., China, and EU are dialogue partners, but IORA is mainly led by middle and small powers.
• Relevance: Needs stronger efforts to become more influential.

Issues faced by IORA

Key issues
Great Power Competition	The Indian Ocean region is mostly free from major power rivalries but faces its own challenges.
Funding Challenge	IORA’s budget depends on member contributions, which are limited.
Member Economies	Apart from Singapore, UAE, and France, most IORA members are developing Asian and African countries.
Budget Size	Estimated to be just a few million dollars, much smaller than the $1.3 billion budget of the Indian Ocean Commission (2020-25).
Funding Gap	Insufficient funds hinder IORA’s work in maritime security, fisheries, disaster management, technology, and the blue economy.
Resource-Intensive Areas	Each of these focus areas requires continuous investment and engagement.
Private Sector Involvement	Businesses in shipping, oil & gas, and marine tourism could become consultative partners and contribute to IORA’s funds.
Maritime Policy Input	Private industry can play a role in shaping maritime policies while supporting funding.
Secretariat & Staffing	IORA operates with a small Secretariat in Mauritius, with limited staff and resources.
Technology in Governance	Digitization can improve data management, policy analysis, and reduce errors in record-keeping.

 

Other suggestions for India

• India’s Security and Growth for All (SAGAR) vision aligns with the objectives of the Indian Ocean Rim Association (IORA).
• To maximize its potential, India should leverage its strong ties with IORA member states to develop effective solutions for regional challenges.

IORA Members’ Contributions to Marine Science & Technology

Country	Key Contribution
Australia	Leading research in marine science and technology
France & Singapore	Strong capabilities in marine-related technologies
UAE & Oman	Potential investors in key marine sectors
Sri Lanka, Seychelles, Mauritius	Rich in traditional knowledge for sustainable marine governance

• Action Needed: Traditional knowledge from coastal and island nations should be mainstreamed for sustainable marine governance.
  • IORA must establish sustained and improved collaborative frameworks for better outcomes.

Strengthening Marine and Maritime-Related Employment

• The marine and maritime sectors will continue to expand, creating new employment opportunities.
• Industrial leaders must:
  • Collaborate with educational and research institutions.
  • Provide real-world problem statements for research and innovation.
  • Develop industry-relevant courses.

Proposed Initiative	Purpose
Marine Accounting Course	Establish a foundation for the blue economy
Industry-Academia Collaboration	Enhance skill development and innovation in maritime sectors

Conclusion

India’s upcoming chairship of IORA presents a crucial opportunity to strengthen regional governance, enhance funding, and integrate technology for better policy-making. By fostering private sector participation, promoting collaboration, and addressing institutional challenges, India can drive IORA toward greater relevance, ensuring sustainable development, security, and economic growth in the Indian Ocean Region.