Standing Committee on Finance (India)

Standing Committee on Finance (India)
Government of India · Public domain · source
Name	Standing Committee on Finance
Legislature	Parliament of India
Type	Departmentally Related Standing Committee
Chaired by	Rajya Sabha member (varies)
Established	1993
Jurisdiction	Ministry of Finance (India), Ministry of Corporate Affairs
Seats	31

Standing Committee on Finance (India)

The Standing Committee on Finance is a Departmentally Related Standing Committee of the Parliament of India constituted to examine matters relating to the Ministry of Finance (India), Ministry of Corporate Affairs, Securities and Exchange Board of India, Reserve Bank of India, Life Insurance Corporation of India, and related public sector undertakings such as State Bank of India and Rashtriya Ispat Nigam Limited. It operates within the framework of provisions set by the Parliamentary Affairs Committee, reporting to both the Lok Sabha and the Rajya Sabha and engaging with major fiscal instruments such as the Union budget, Goods and Services Tax, and Finance Act.

History and Mandate

The committee traces origins to reforms following recommendations of the P. V. Narasimha Rao era parliamentary restructuring and the 1993 overhaul that implemented Departmentally Related Standing Committees modeled on practices from the United Kingdom Parliament and influenced by consultative reports like those of the Committee on Reform of the Parliament. Its mandate, defined in the rules of the Parliament of India and the Departmentally Related Standing Committees Rules, 1993, requires the panel to examine demand for grants, annual reports, bill provisions such as the Budget (India), and issues arising from entities like the Insurance Regulatory and Development Authority and the Pension Fund Regulatory and Development Authority.

Composition and Membership

Membership comprises thirty-one parliamentarians drawn from the Lok Sabha and the Rajya Sabha nominated by the Committee on Personnel, Public Grievances and Law and Justice and the floor leaders of recognized parties. Chairpersons have included senior members from parties such as the Bharatiya Janata Party, Indian National Congress, Communist Party of India (Marxist), and All India Trinamool Congress. Members interact with officials from Ministry of Finance (India), Department of Economic Affairs, Department of Revenue (India), and heads of institutions like the Reserve Bank of India governor and the Securities and Exchange Board of India chairperson.

Functions and Powers

The committee exercises scrutiny over demand for grants submitted by ministries including Ministry of Corporate Affairs and bodies such as National Housing Bank and Small Industries Development Bank of India. It is empowered to call ministers, secretaries, and executives from entities like Life Insurance Corporation of India and National Bank for Agriculture and Rural Development to give evidence, seek information, and examine bills such as the Banking Regulation Act amendments and the Insolvency and Bankruptcy Code provisions. While it cannot amend the Finance Bill directly, its recommendations carry weight in shaping revisions adopted by the Lok Sabha and the Rajya Sabha.

Procedures and Working Methods

The committee meets in camera for evidence sessions with officials from institutions such as the Reserve Bank of India and the Securities and Exchange Board of India and conducts public hearings when engaging stakeholders like Federation of Indian Chambers of Commerce & Industry and the Confederation of Indian Industry. Working groups and subcommittees draft report chapters, examine memoranda from entities including State Bank of India and Life Insurance Corporation of India, and follow procedures laid down in the Rules of Procedure and Conduct of Business in Lok Sabha and corresponding Rajya Sabha rules. It publishes reports after deliberation and may seek inputs from experts associated with institutions such as the Institute of Chartered Accountants of India and the National Institute of Public Finance and Policy.

Major Reports and Recommendations

The committee has produced influential reports on subjects including the Union budget allocations, tax policy reform proposals affecting the Goods and Services Tax, scrutiny of non-performing assets with references to Reserve Bank of India frameworks, recommendations on amendments to the Banking Regulation Act, and reviews of privatization proposals involving firms like Air India and Bharat Petroleum Corporation Limited. Its reports have addressed measures for financial inclusion tied to schemes like Pradhan Mantri Jan Dhan Yojana and recommended changes to regulations involving the Insurance Regulatory and Development Authority and Pension Fund Regulatory and Development Authority.

Influence on Budgetary and Fiscal Policy

Through analysis of demand for grants and interaction with the Ministry of Finance (India), the panel has influenced budgetary allocations to sectors overseen by entities including the National Small Industries Corporation and the National Housing Bank. Recommendations on banking sector consolidation, fiscal deficit targets linked to Fiscal Responsibility and Budget Management Act, 2003 norms, and tax administration reforms have informed debates in the Lok Sabha and the Standing Committee on Finance’s outputs have been cited in budget speech deliberations and policymaking by the Reserve Bank of India and the Ministry of Finance (India).

Criticisms and Reforms

Critics from think tanks such as the Centre for Policy Research and policy commentators in outlets like the Economic Times have argued that the committee’s reports sometimes lack enforceability and timeliness, citing delays in government responses and limited follow-up on entities like Public Sector Undertakings. Reforms proposed by parliamentary committees and academics advocate strengthening enforcement mechanisms under the Parliamentary Affairs Committee, increasing transparency via mandatory public hearings, and enhancing technical support from institutions such as the Institute for Human Development and the National Institute of Public Finance and Policy to improve the committee’s efficacy.

Category:Parliament of India committees Category:Finance of India