Sidestepping debate

Sidestepping debate

Making the finance bill a grab bag of legislations runs counter to government accountability.
The finance bill passed by Lok Sabha on Wednesday had significant additions to the original bill presented on the heels of finance minister Arun Jaitley's budget speech in February. While some proposals such as a cap on large cash transactions are consistent with government measures to combat black money, other changes were worrisome from the standpoint of transparency and accountability. Over the last three budgets, legislative changes as diverse as introduction of an inflation target mandate for RBI to mergers of appellate tribunals have been effected through the finance bill. This practice short-circuits debate on important changes proposed by the government.
A finance bill is a category of money bill. This significantly reduces Rajya Sabha's role in influencing it. At the moment, a case which examines the legal boundaries of a money bill is under Supreme Court's consideration. Regardless of what the apex court decides, the manner in which a finance bill has become a grab bag of legislations is disquieting.
The latest decision to replace eight tribunals is puzzling. Appellate tribunals have an important role in improving the accountability of regulators who have quasi-judicial powers. Increasing complexity of economic activity has made specialisation imperative for appellate tribunals. For instance, it is difficult to understand how government sees synergy between airport and telecom regulators. In another instance, an amendment which provides companies the cover of anonymity in political funding could surely have done with more discussion. Pushing through important changes in a hurry and in a manner which circumvents the need to get Rajya Sabha's approval undermines democracy.
BJP has a majority in Lok Sabha and next year will be the dominant party in Rajya Sabha too. That makes it all the more difficult to understand why a variety of legislative changes beyond tax should be pushed in under the finance bill cover. It also runs counter to the spirit of relevant provisions of the Constitution. Legislative history in India has been characterised by unintended consequences and poor drafting. Both the economy and society have paid a heavy price. That is also why more debate and transparency are essential.