The inclusion of non-tax proposals in the Finance Bill undermines the legislative process. The Finance Bill of 2019, in addition to amending the tax laws, also amends several other laws unrelated to taxation
The first Budget session of the 17th Lok Sabha is underway. Earlier this month, Finance Minister Nirmala Sitharaman outlined the government’s budgetary proposals in her speech in the Lok Sabha. After finishing her speech, she introduced the Finance Bill. The rules of procedure of the Lok Sabha refer to the Finance Bill as a Bill which is introduced each year to give effect to the financial proposals of the government for the next financial year. It ordinarily contains the details of the changes in the tax rates and other consequential changes in the tax laws of the country.
However, the Finance Bill of 2019, in addition to amending the tax laws, also amends several other laws unrelated to taxation in the country. For example, it amends the Reserve Bank of India Act, the National Housing Bank Act and the Insurance Act to change the net worth requirements of non-banking finance companies, housing finance companies and foreign insurance companies engaged in reinsurance. In addition, it Proposes amendments to enable RBI to take measures for the management of NBFCs.
Even in the 16th Lok Sabha, some Finance Bills amended laws which were not connected to the taxation regime in the country. The Finance Bill of 2016 amended the RBI Act to establish the Monetary Policy Committee as a statutory body responsible for inflation targeting. The 2017 Finance Bill, Changed the composition of 19 tribunals such as the Securities Appellate Tribunal, the Telecom Disputes Settlement and Appellate Tribunal, the National Green Tribunal and repealed Seven other authorities including the Competition Appellate Tribunal. The Finance Bill, 2018, had 218 clauses, half of which were matters unrelated to the imposition of taxes.
In our parliamentary system, all Bills go through a detailed scrutiny process. This scrutiny process is multi-tiered. First MPs Have the opportunity to oppose the introduction of a Bill. Thereafter a Bill is referred to a Parliamentary Committee composed of MPs from both Lok Sabha and Rajya Sabha which examines in detail each clause of a Bill. It also invites government and other experts to share with the committee their views on the Bill. Thereafter the Bill is debated extensively on the floor of both Houses of Parliament. However, the Finance Bill, which falls in the category of a Money Bill, does not go through a similar process. For one, it is the exclusive preserve of the Lok Sabha. The Rajya Sabha can only make suggestions for amending the Finance Bill. Also, its suggestions are not binding on the Lok Sabha. In addition, Finance Bills do not go through the detailed scrutiny of a Parliamentary Standing Committee. Which means that if a Finance Bill contains provisions other than those related to taxation they escape the scrutiny process of Parliament.
The first speaker of the Lok Sabha, G V Mavalankar, was of the opinion that a Money Bill could contain provisions other than those related to the imposition of taxes if such provisions were necessary for the administration of that tax. His successor, M A Ayyangar, provided a more specific interpretation of what could be included in the Finance Bill. In 1956 he said, “I would normally urge upon the Finance Minister, not only he but also all his successors, to see to it that only those provisions which relate to the raising of taxation should be included in the Bill. The procedure should be followed and no other provisions should be given attention to unless they are absolutely consequential.” In 2017, the Speaker of the Lok Sabha also suggested that every effort should be made to separate taxation measures from other matters.
Changes in the taxation regime of a country may vary depending on the economic policies being followed by a popularly elected government. Such changes can only be done by the directly elected house as long as the government enjoys the confidence of that house. However, structural changes in our legal system, which are unrelated to taxation, should only be done through the established mechanism of scrutiny and deliberation by both houses of Parliament. There is no reason to exclude the Rajya Sabha from deliberating on the changes of a permanent nature to the legal system and having its opinion addressed. Such changes should only be made through separate Bills which go through the full scrutiny of Parliament.
Bypassing of this process results in such changes getting embroiled in litigation. Currently, the Supreme Court is hearing several petitions that question the constitutional validity of changes made to the structure and composition of tribunals as was done by the Finance Bill, 2017. More importantly, when substantive structural and regulatory changes to laws are included in the Finance Bill, it sets a bad precedent and undermines the role of Parliament in ensuring that the lawmaking process is rigorous as well as consultative. The authors are with PRS Legislative Researce
Governors of States in India: Governor is the nominal head of a state, unlike the Chief Minister who is the real head of a state in India. According to an amendment in the Constitution of India (7th Constitutional Amendment Act), brought about in 1956, the same person can be the Governor of two or more states.
Appointment and removal: The governors and lieutenant-governors are appointed by the president for a term of 5 years. The term of governor’s office is normally 5 years but it can be terminated earlier by: Dismissal by the president on the advice of the prime minister of the country, at whose pleasure the governor holds office or Resignation by the governor. Thus, the term is subject to pleasure of the president. There is no provision of impeachment, as it happens for the president. Article 157 and Article 158of the Constitution of India specify eligibility requirements for the post of governor.
Powers: Like the President of India, the Governor of any state in India is vested with certain executive, legislative and judicial powers. He or she also possesses certain discretionary or emergency powers. But one major difference in the powers enjoyed by the President and those enjoyed by the Governor is, the Governor does not have any diplomatic or military powers.
Some discretionary powers are as follows: Governor can dissolve the legislative assemblyif the chief minister advices him to do following a vote of no confidence. Following which, it is up to the Governor what he/ she would like to do. Governor, on his/ her discretion can recommend the president about the failure of the constitutional machinery in the state. On his/ her discretion, the Governor can reserve a bill passed by the state legislature for president’s assent.
If there is no political party with a clear-cut majority in the assembly, Governor on his/ her discretion can appoint anybody as chief minister. Governor determines the amount payable by the Government of Assam, Meghalaya, Tripura and Mizoram to an autonomous Tribal District Council as royalty accruing from licenses for mineral exploration. Governor can seek information from the chief minister with regard to the administrative and legislative matters of the state. Governor has discretion to refuse to sign to an ordinary bill passed by the state legislature.
Problem with constitutional design: The governor is merely appointed by the president on the advice of the Central government. Unlike the president, a governor does not have a fixed term. He/she holds office at the pleasure of the ruling party in the centre. Both the manner of the appointment and the uncertainty of tenure conspire to make the incumbent an object of the Central government in politically charged circumstances.
Key highlights: Compensation for road accident victims: The central government will develop a scheme for cashless treatment of road accident victims during golden hour. The central government may also make a scheme for providing interim relief to claimants seeking compensation under third party insurance. Compulsory insurance: The Bill requires the central government to constitute a Motor Vehicle Accident Fund, to provide compulsory insurance cover to all road users in India.
The fund will be utilised for: (i) treatment of persons injured in road accidents as per the golden hour scheme, (ii) compensation to representatives of a person who died in a hit and run accident, (iii) compensation to a person grievously hurt in a hit and run accident, and (iv) compensation to any other persons as prescribed by the central government. This Fund will be credited through: (i) payment of a nature notified by the central government, (ii) a grant or loan made by the central government, (iii) balance of the Solatium Fund (existing fund under the Act to provide compensation for hit and run accidents), or (iv) any other source as prescribed the central government.
Good samaritans: The Bill defines a good samaritan as a person who renders emergency medical or non-medical assistance to a victim at the scene of an accident. The assistance must have been (i) in good faith, (ii) voluntary, and (iii) without the expectation of any reward. Such a person will not be liable for any civil or criminal action for any injury to or death of an accident victim, caused due to their negligence in providing assistance to the victim.
Recall of vehicles: The Bill allows the central government to order for recall of motor vehicles if a defect in the vehicle may cause damage to the environment, or the driver, or other road users.
The manufacturer of the recalled vehicle will be required to: (i) reimburse the buyers for the full cost of the vehicle, or (ii) replace the defective vehicle with another vehicle with similar or better specifications. National Transportation Policy:The central government may develop a National Transportation Policy, in consultation with state governments. The Policy will: (i) establish a planning framework for road transport, (ii) develop a framework for grant of permits, and (iii) specify priorities for the transport system, among other things.
Road Safety Board: The Bill provides for a National Road Safety Board, to be created by the central government through a notification. The Board will advise the central and state governments on all aspects of road safety and traffic management including.
Offences and penalties: The Bill increases penalties for several offences under the Act. Taxi aggregators:The Bill defines aggregators as digital intermediaries or market places which can be used by passengers to connect with a driver for transportation purposes (taxi services). These aggregators will be issued licenses by state. Further, they must comply with the Information Technology Act, 2000.
About Swadesh Darshan Scheme: Tourism Ministry launched the scheme. Objective: to develop theme-based tourist circuits in the country. These tourist circuits will be developed on the principles of high tourist value, competitiveness and sustainability in an integrated manner.
Features of Swadesh Darshan Scheme: The scheme is 100% centrally funded for the project components undertaken for public funding. To leverage the voluntary funding available for Corporate Social Responsibility (CSR)initiatives of Central Public Sector Undertakings and corporate sector. Funding of individual project will vary from state to state and will be finalised on the basis of detailed project reports prepared by PMC (Programme Management Consultant).
A National Steering Committee (NSC) will be constituted with Minister in charge of M/O Tourism as Chairman, to steer the mission objectives and vision of the scheme.
A Mission Directorate headed by the Member Secretary, NSC as a nodal officer will help in identification of projects in consultation with the States/ UTs governments and other stake holders. PMC will be a national level consultant to be appointed by the Mission Directorate.
What is CCTNS project? Crime and Criminal Tracking Network and Systems (CCTNS) is a project initiated in June 2009 which aims at creating a comprehensive and integrated system for enhancing the efficiency and effectiveness of policing at the Police Station level. This will be done through adoption of principles of e-Governance, and creation of a nationwide networked infrastructure for evolution of IT-enabled state-of-the-art tracking system around “investigation of crime and detection of criminals”. CCTNS is a Mission Mode Project (MMP) under the National e-Governance Plan of Govt. of India.
What it does? The Project will interconnect about 15000 Police Stations and additional 5000 offices of supervisory police officers across the country and digitize data related to FIR registration, investigation and charge sheets in all Police Stations.
It will not only automate Police functions at Police station and higher levels but will also create facilities and mechanism to provide public services like registration of online complaints, ascertaining the status of case registered at the police station, verification of persons etc. In 2015, an additional objective of establishing a basic platform for an Inter-operable Criminal Justice System (ICJS) was added to the Project.
Benefits: The Full implementation of the Project with all the new components would lead to a Central citizen portal having linkages with State level citizen portals that will provide a number of citizen friendly services like Police Verification for various purposes including passport verification, reporting a crime including cyber-crime and online tracking of the case progress etc.
The project will enable National level crime analytics to be published at increased frequency, which will help the policy makers as well as lawmakers in taking appropriate and timely action, it will also enable Pan-India criminal/accused name search in the regional language for improved inter-state tracking of criminal movement. This would lead to development of a national database of crimes and criminals.
The index will include indicators such as percentage of households using computers/ laptops with internet connection, percentage of households with fixed broadband connection, internet users as a percentage of the population, smartphones density, percentage of households with at least one digitally literate member, etc.
Objectives: Appraise the condition of the underlying digital infrastructure and related factors at state/UT levels. Provide useful insights into strategic choices made by states for investment allocations in ICT programmes, the statement said. Encourage states to cross learn and jointly participate in achieving the overall objective of digital inclusion and development in India.
Significance: The framework will not only evaluate a state’s relative development but also allow for better understanding of a state’s strengths and weaknesses that can feed into evidence-based policy making.
Background: The National Digital Communication Policy (NDCP) 2018 acknowledged the need for building a robust digital communications infrastructure leveraging existing assets of the broadcasting and power sectors including collaborative models involving state, local bodies and the private sector. The policy recommended that an index for states and UTs be developed to attract investments and address Right of Way (RoW) challenges across India.
About Spektr- RG: The Spektrum-Röntgen-Gamma mission, also known as Spektr-RG, is a joint project between the Russian space agency, Roscosmos, and the German space agency, DLR.
Position: Spektr-RG will be placed in a stable orbit in space called a Lagrange point (specifically, L2), where the gravitational forces of two large objects — in this case, the sun and the Earth — balance each other out. This location will allow Spektr-RG to perform its observations while using a minimal amount of fuel.
Objectives: The spacecraft is expected to detect 100,000 galaxy clusters, 3 million supermassive black holes, tens of thousands of star-forming galaxies, the presence of plasma (superheated gas) and many more types of objects.
The observatory includes two X-ray mirror telescopes, called ART-XC and eROSITA. A key goal of Spektr-RG will be to investigate the mysterious cosmic components referred to as “dark matter” and “dark energy”.
What is Open Acreage Licensing Policy (OALP)? The OALP, a critical part of the Hydrocarbon Exploration and Licensing Policy, provides uniform licences for exploration and production of all forms of hydrocarbons, enabling contractors to explore conventional as well as unconventional oil and gas resources.
Fields are offered under a revenue-sharing model and throw up marketing and pricing freedom for crude oil and natural gas produced. Under the OALP, once an explorer selects areas after evaluating the National Data Repository (NDR) and submits the EoI, it is to be put up for competitive bidding and the entity offering the maximum share of oil and gas to the government is awarded the block.
NDR has been created to provide explorers’ data on the country’s repositories, allowing them to choose fields according to their capabilities. Data received through the National Seismic Programme, an in-depth study of 26 sedimentary basins, are continuously being added to the NDR.
Background: The Hydrocarbon Exploration and Licensing Policy (HELP) replacing the erstwhile New Exploration Licensing Policy (NELP) was approved in March 2016 and the Open Acreage Licensing Programme (OALP) along with the National Data Repository (NDR) were launched in June 2017 as the key drivers to accelerate the Exploration and Production (E&P) activities in India.
The main features of HELP are Revenue Sharing Contract, single Licence for exploration and production of conventional as well as unconventional Hydrocarbon resources, marketing & pricing freedom, etc.
What was the need for the new Hydrocarbon Exploration and Licensing Policy (HELP)? In 2015-2016, India’s crude oil import dependence rose to 81% from 78.5%. In last five years, India has seen overall decline in exploration and production of conventional resources.
New Exploration Licensing Policy (NELP) created in 1997 ended the state dominance and created a competitive environment leading to liberalization of oil and gas exploration and production industry. However, it failed to keep the momentum of production growth and attracting the foreign investment.
Bureaucratic hurdles like multiple approvals and sanctions, cost overruns, and disputes led to some oil majors leaving their awarded blocks and exit from the space.
Background: Globally, the transport sector accounts for a quarter of total emissions, out of which three quarters are from road transport.
Why reduce CO2 emissions from road transport? Reducing CO2 emissions of road transport leverages multiple co-benefits, for example, improving air quality and increasing physical activity, which are critical for well-being, particularly in urban areas.
What needs to be done? The action requires an understanding of how emissions vary with spatial context. In India, income and urbanisation are the key determinants of travel distance and travel mode choice and, therefore, commuting emissions.
Mayors and town planners should organise cities around public transport and cycling, thereby improving mobility for many, while limiting car use. India should double down in its strategy to transition to electric two and three-wheelers. India is the third-largest market for automobiles; about 25 million internal combustion engines were sold in 2017, including about 20 million two-wheelers.
Compact cities improve accessibility and reduce emissions from transport and even the building sector. City managers should ensure that existing urban areas provide short routes and fast access to schools, hospitals and jobs, otherwise, residents would be required to travel long distances.
National Backward Classes Finance and Development Corporation (NBCFDC), an organization under the aegis of Ministry of Social Justice and Empowerment has the following two women specific schemes for targeted women whose annual family income is less than Rs. 3.00 lakh per annum:
Mahila Samriddhi Yojana: To provide Micro Finance to women entrepreneurs of Backward Classes. New Swarnima Scheme for Women: Term Loan to inculcate the spirit of self-dependence among the women of Backward Classes.
What is Demands for Grants? Article 113 of the Constitution of India mandates that estimates of expenditure from the Consolidated Fund of India are included in the Annual Financial Statement, which are required to be voted by the Lok Sabha, and submitted in the form of demand for grants. The demands for grants are presented to the Lok Sabha along with the Annual Financial Statement. More than one Demand may be presented for a Ministry or Department depending on the nature of expenditure.
Regarding Union Territories without Legislature, a separate demand is presented for each of such Union Territories. Each demand initially gives separately the totals of (i) ‘voted’ and ‘charged’ expenditure; (ii) the ‘revenue’ and the ‘capital’ expenditure and (iii) the grand total on gross basis of the amount of expenditure for which the demand is presented.
This is followed by the estimates of expenditure under different major heads of account. The breakup of the expenditure under each major head between ‘Plan’ and ‘Non-Plan’ is also given. The amounts of recoveries are also shown. Why in News? Lok Sabha approves the demands for grants under Road Transport and Highways for 2019-20.
Jan Jagrukta Abhiyaan: It is a campaign to be launched by the Ministry of Health and Family Welfare in Delhi to sensitize and mobilise the community on measures for prevention and control of Vector Borne Diseases (VBDs) like Malaria, Dengue and Chikungunya.
Context: Restoration work of Markandeshwar temple in Maharashtra by Archaeological Survey of India is in full swing.
About the temple: Known as the “Khajuraho of Vidarbha”,the temple of Markandadeo is situated on the bank of River Wainganga in district Gadchiroli of Maharashtra. The temples belong to the Nagara group of temples of North India. On stylistic grounds, their date ranges in between 9-12th centuries CE. The temples belong to saiva, vaishnava and sakta faith. Most of the temples have a simple plan, with ardhamandapa, mandapa, antaralaand garbhagriha forming the component of the entire set up.
About Sangeet Natak Akademi: The Sangeet Natak Akademi – India’s national academy for music, dance and drama – is the first National Academy of the arts set-up by the Republic of India. It was created by a resolution of Government of India.
It was set up in 1952. The academy functions as the apex body of the performing arts in the country to preserve and promote the vast cultural heritage of India expressed in music, dance and drama. It also works with governments and art academies in states and territories of the country.
The academy Renders advice and assistance to the government of India in the task of formulating and implementing policies and programmes in the field. It carries a part of the responsibilities of the state for fostering cultural contacts between regions in the country, as well as between India and the world.
The Akademi Awards are the highest national recognition conferred on eminent artistes. Each year the Academy awards Sangeet Natak Akademi Fellowships, Ratna Sadsya, to distinguished individuals for their contribution to the field of arts, music, dance and theatre. Ustad Bismillah Khan award is given to young artists for their talent in the fields of music, dance and drama. The Ustad Bismillah Khan Yuva Puraskar is conferred upon artists below the age of 40 years.