22 March 2025 : The Hindu Editorial Analysis

1. India’s marginalised Parliament in budgetary affairs

(Source – The Hindu, International Edition – Page No. – 6)

Budget: More Than a Financial Statement

• The Budget is not just about numbers; it reflects a country’s priorities, economic vision, and governance style.
• In most democracies, parliaments control national budgets, ensuring discipline and transparency.
• In India, parliamentary influence is minimal, as the executive solely controls budget-making, giving legislators little power to shape financial policies.

Role of the Budget in Democracy

• Budgeting is a key function of democracy, defining how public resources are allocated for social and economic growth.
• Historically, parliaments worldwide have fought to oversee public finance to prevent executive overreach.
• Across countries, parliamentary engagement in budget discussions improves transparency and leads to better economic stability.

Limited Parliamentary Role in India

• In India, the Finance Ministry drafts the Budget alone, often keeping even Cabinet Ministers uninformed.
• The Lok Sabha debates but cannot significantly amend Budget proposals.
• The Rajya Sabha has no voting power over the Budget, unlike some bicameral legislatures worldwide.

Decline in Parliamentary Scrutiny

• Budget debates are often short and lack in-depth discussion.
• Parliamentary committees have limited power, reducing their ability to influence policies.
• As a result, the legislature mostly approves the Budget without real scrutiny, weakening accountability.

Need for Pre-Budget Discussions

• Introducing structured pre-Budget discussions during the monsoon session can strengthen legislative oversight.
• A five-to-seven-day discussion period would help assess fiscal health and shape economic priorities.
• Greater involvement of subject committees would improve resource allocation and decision-making.
• These discussions would ensure public concerns are considered before finalizing the Budget.

Concerns Over Legislative Power in Budgeting

• Some argue that more legislative control might lead to populist spending.
• However, relying solely on the executive for fiscal discipline is risky.
• A balanced approach—where the executive retains control but is accountable—ensures better governance.

Establishing a Parliamentary Budget Office (PBO)

• India lacks an independent institution that provides non-partisan Budget analysis for legislators.
• A PBO would offer data-driven insights, similar to those in the U.S., Australia, Canada, and the UK.
• The PBO would analyze government spending, revenue projections, and fiscal policies, making policymaking more informed.
• It would support parliamentarians with research-based policy briefs to improve decision-making.

Restoring Parliamentary Authority Over the Budget

• The current process limits legislative influence, reducing democratic accountability.
• Implementing pre-Budget discussions and a PBO would shift Parliament from a passive role to an active one.
• These reforms would ensure financial decisions are made through collective deliberation, not just executive control.
• A stronger parliamentary role would lead to fairer economic policies, better transparency, and improved public trust in financial governance. 

2. Charting a route for IORA under India’s chairship

(Source – The Hindu, International Edition – Page No. – 6)

Introduction to IORA

• The Indian Ocean Rim Association (IORA) is a regional organization that fosters cooperation among countries in Asia, Africa, and Australia, connected via the Indian Ocean.
• It promotes economic growth, regional security, and environmental sustainability.
• India is currently the Vice-Chair and will assume Chairmanship in November 2025 for two years.
• India aims to strengthen IORA’s governance by increasing funding, integrating technology, and developing maritime courses through collaborations.

Challenges Faced by IORA

1. Limited Budget
   • IORA’s funding is dependent on its members, most of whom are developing economies.
   • The annual budget is very small, while other regional organizations, such as the Indian Ocean Commission, have much larger budgets ($1.3 billion for 2020-25).
   • Sectors like maritime security, fisheries, disaster risk management, and blue economy require significant financial investment.
2. Lack of Private Sector Participation
   • IORA lacks contributions from private industries, despite their major role in shipping, oil and gas, and marine tourism.
   • Engaging private companies in policy-making and funding could enhance IORA’s financial resources and strategic direction.
3. Technological Limitations
   • The IORA Secretariat, based in Mauritius, has limited staff and resources.
   • Manual data processing leads to inefficiencies and errors.
   • Digital transformation is essential for better policy analysis and governance.

India’s Role and Recommendations

• India’s Security and Growth for All (SAGAR) vision aligns with IORA’s goals, offering an opportunity to drive impactful initiatives.
• India can use its strong ties with member countries to develop solutions for regional challenges.

1. Leveraging Expertise from IORA Members
   • Some member states have advanced marine science and technology capabilities.
   • Countries with strengths in marine industries, investment potential, and traditional knowledge can contribute to IORA’s development.
2. Promoting Sustainable Marine Governance
   • • Traditional coastal knowledge from small island nations should be integrated into marine resource management.
     • Encouraging cooperation and knowledge-sharing will lead to more effective and sustainable marine governance.
3. Enhancing Maritime Education and Research
   • IORA should focus on collaborating with research institutions and industries to create maritime-focused academic courses.
   • Specialized courses like marine accounting can build expertise in managing the blue economy.

Conclusion

• IORA has the potential to drive economic and strategic cooperation in the Indian Ocean Region.
• India’s leadership must overcome funding gaps, strengthen institutional frameworks, and encourage private sector participation.
• Through these efforts, IORA can become a stronger and more effective organization for regional prosperity. 

Read more- 21 March 2025 : The Hindu Editorial Analysis