Estimates Committee of the Parliament of India

Why in News ? 75th Anniversary: In June 2025, a National Conference in Mumbai marked 75 years of the Estimates Committee. Lok Sabha Speaker Om Birla emphasized its role in improving governance efficiency and fiscal accountability. The conference theme was the “Role of Estimates Committee in Effective Monitoring and Review of Budget Estimates.”

About Estimates Committee:

The Estimates Committee is one of the three key financial committees of the Indian Parliament, alongside the Public Accounts Committee (PAC) and the Committee on Public Undertakings (CoPU). Constituted under the Rules of Procedure and Conduct of Business in Lok Sabha, it is the largest parliamentary committee, comprising 30 members exclusively from the Lok Sabha. Its primary objective is to examine budget estimates presented in Parliament, suggest economies in public expenditure, and propose alternative policies to enhance administrative efficiency.

Historical Background:

• Origin: The concept of the Estimates Committee traces back to the British Era in the 1920s, when it was established to review government expenditure. However, the first Estimates Committee of Independent India was set up in 1950, post the adoption of the Constitution of India.

• Milestone: In 2025, the Lok Sabha Speaker inaugurated the National Conference of Estimates Committees in Mumbai to commemorate 75 years of the committee’s existence, highlighting its enduring role in ensuring transparent and accountable fiscal governance.

• Evolution: Since its inception, the committee has published 1118 reports (as of 2018), including 624 original reports and 494 action-taken reports, reflecting its extensive oversight over government spending.

Composition:

• Membership: The Estimates Committee consists of 30 members, all elected annually from the Lok Sabha through proportional representation using a single transferable vote system. This ensures representation from all political parties.

• Eligibility: Ministers are not eligible to be members. If a member is appointed as a minister during their term, they cease to be a committee member from the date of appointment.

• Chairperson: The Lok Sabha Speaker appoints the chairperson, who is invariably from the ruling party or coalition. For instance, Sanjay Jaiswal was appointed chairperson for the 2024-25 term.

• Tenure: The committee’s term is one year, with members eligible for re-election.

Functions:

As outlined in Rule 310 of the Rules of Procedure and Conduct of Business in Lok Sabha, the Estimates Committee performs the following key functions:

1. Scrutiny of Expenditure: Examines budget estimates to identify potential economies, improvements in organization, efficiency, or administrative reforms consistent with the policy underlying the estimates.

2. Policy Suggestions: Proposes alternative policies to enhance efficiency and economy in administration.

3. Financial Oversight: Assesses whether funds are allocated within the limits of the policy implied in the estimates.

4. Presentation Improvements: Recommends formats for presenting budget estimates to Parliament for greater clarity and transparency.

5. Selective Review: Chooses specific ministries, departments, or statutory bodies for detailed scrutiny each year, as it cannot review all budgets annually.

The committee is often referred to as the Continuous Economy Committee due to its ongoing efforts to promote fiscal prudence.

Working Process

The Estimates Committee follows a structured process to fulfill its mandate:

• Selection of Estimates: Selects specific ministries/departments or statutory bodies for scrutiny based on relevance or special interest.

• Information Gathering: Collects data from government and non-official sources, including written submissions and oral testimonies.

• Study Visits: Conducts on-ground assessments with prior approval to evaluate expenditure efficiency.

• Evidence Sessions: Holds formal sessions in Parliament to question officials and stakeholders.

• Report Publication: Submits reports to the Lok Sabha with findings and recommendations. The government must respond within six months via Action Taken Reports (ATRs).

• Coverage: Over the years, the committee has reviewed nearly all major ministries and departments, ensuring comprehensive oversight over time.

Limitations

Despite its critical role, the Estimates Committee operates within certain constraints:

• Post-Voting Review: The committee can only examine budget estimates after they are voted by Parliament, not before.

• No Policy Scrutiny: It lacks authority to question the policies underlying the estimates, limiting its scope to implementation aspects.

• Advisory Role: Recommendations are advisory and non-binding on Parliament or the government.

• Selective Examination: Cannot review all budgets annually; it examines departmental budgets over multiple years.

• Exclusion: Does not oversee public undertakings, which fall under the Committee on Public Undertakings (CoPU).

Significance

The Estimates Committee is a cornerstone of parliamentary oversight, offering several benefits:

• Accountability: Holds the government accountable by scrutinizing expenditure and ensuring funds are used efficiently.

• Efficiency: Promotes economies in public spending, reducing wasteful expenditure.

• Non-Partisan Approach: Fosters a cooperative environment among MPs, encouraging consensus-building.

• Stakeholder Engagement: Consults experts, civil society, and the public to gather diverse perspectives.

• Time Management: Reduces the workload of Parliament by conducting detailed scrutiny outside the main sessions.

• Policy Impact: Its recommendations, such as those on GDP estimation or Ganga rejuvenation, influence administrative reforms and policy implementation.