Working of Institutions

1. How a Major Policy Decision is Taken (The Mandal Story)

To understand why we need institutions, the chapter begins with a real decision. In 1979 the government appointed the Second Backward Classes Commission, headed by B.P. Mandal, hence called the Mandal Commission. It was asked to find out how to identify the socially and educationally backward classes of India and suggest ways to improve their condition. The Commission gave its report in 1980 and recommended that 27% of government jobs be reserved for the Other Backward Classes (OBCs). For ten years the report was not implemented. Finally, in 1990, the government decided to act on it. This shows that decisions are not taken by one person alone; they pass through several institutions before becoming a reality.

2. The Office Memorandum — A Decision Becomes an Order

On 13 August 1990 the Department of Personnel and Training issued an Office Memorandum (O.M.), an official order stating that 27% of vacancies in central government services would be reserved for the Socially and Educationally Backward Classes. But before this order was issued, several institutions were involved: the Cabinet had to approve it, Parliament had discussed and endorsed the idea, and the President had given assent to the policy. After the order, when some people challenged it, the matter went to the Supreme Court. In the famous Indra Sawhney case (1992), the Court declared the order valid but added that the “creamy layer” (the well-off among the OBCs) should be excluded from the benefit. This single example involves the government, Parliament, President and the Judiciary — all the major institutions.

3. Why Do We Need Institutions?

In any government, decisions have to be taken and implemented in an orderly way. If everything depended on one leader’s wishes, there would be confusion, favouritism and dictatorship. Institutions provide rules and procedures that everyone must follow, making decisions slower but also more careful, balanced and fair. Institutions also allow for checks and balances — each one keeps the others within limits. Following institutions can be frustrating because it takes time, but it prevents hasty and wrong decisions and protects democracy.

4. Parliament — The Supreme Law-Making Body

In a democracy the people elect their representatives, and these representatives sit together in an assembly to take decisions for the whole country. This assembly is the Parliament. The Indian Parliament has the President and two Houses — the Lok Sabha (House of the People) and the Rajya Sabha (Council of States). Parliament is so important because: (a) it is the final authority for making laws (legislation); (b) it controls those who run the government — in India no law or major policy can be made without the support of the Lok Sabha; (c) it controls all the money the government spends; and (d) it is the highest forum for discussion and debate on public issues and national policy.

5. Lok Sabha and Rajya Sabha — Who is More Powerful?

Members of the Lok Sabha are directly elected by the people. Members of the Rajya Sabha are elected by the elected members of the State Legislative Assemblies. Though the two Houses enjoy equal powers in passing ordinary laws, the Lok Sabha is more powerful in three ways. First, in money matters the Lok Sabha’s decision is final; the Rajya Sabha can only delay a Money Bill by 14 days and suggest changes which the Lok Sabha may reject. Second, if there is a difference between the two Houses on an ordinary law, a joint session is held, and since the Lok Sabha has more members, its view usually prevails. Third, and most importantly, the Lok Sabha controls the Council of Ministers — only a person who enjoys the support of the majority in the Lok Sabha can be the Prime Minister, and if the majority of Lok Sabha members say they have “no confidence” in the Council of Ministers, the entire government must resign.

6. The Political Executive and the Permanent Executive

The people who run the government and take decisions to implement laws are the executive. They are of two kinds. The political executive consists of political leaders — the Prime Minister and the ministers — who are elected by the people for a limited period and take all the major policy decisions. The permanent executive consists of the civil servants (officers of the IAS, IPS, etc.) who are appointed permanently and work even when governments change. They advise ministers and carry out their decisions. The political executive is more powerful than the permanent executive because the minister is answerable to the people; an expert can only advise, but the final decision and responsibility must rest with the elected leader.

7. The Prime Minister and the Council of Ministers

The Prime Minister is the most important political institution in the country. The President appoints the leader of the majority party (or alliance) in the Lok Sabha as Prime Minister. The PM then chooses the other ministers, who are appointed by the President. The PM allocates ranks and portfolios, chairs Cabinet meetings, coordinates the work of departments, and can dismiss or ask a minister to resign. The Council of Ministers has three categories: Cabinet Ministers (top leaders heading major ministries), Ministers of State with independent charge, and Ministers of State who assist Cabinet Ministers. The Cabinet, about 20 senior ministers, is the inner ring that takes the most important decisions.

8. The President — The Nominal Head

The President is the head of the State and the first citizen, but is a nominal executive — the President exercises powers only on the advice of the Council of Ministers. The President is not directly elected by the people but by an electoral college of elected MLAs and MPs. All laws and major policies are made in the President’s name and all major appointments are made in the President’s name. The President can return a bill (other than a Money Bill) for reconsideration once, but if Parliament passes it again, the President must sign it. Thus the President supervises the working of the Constitution but does not run the government personally.

9. The Judiciary — Guardian of the Constitution

All the courts in the country together form the judiciary. India has an integrated judiciary with the Supreme Court at the top, High Courts in the states, and district and lower courts below. The Indian judiciary is one of the most powerful in the world because it is independent. Judges of the Supreme Court and High Courts are appointed by the President on the advice of the Chief Justice, and they cannot be removed easily — only by an impeachment motion passed by Parliament. This independence allows courts to act without fear. The Supreme Court can hear disputes between citizens, between citizens and government, between two state governments, and between the centre and states. Most importantly, it can do judicial review — it can declare a law of Parliament or an action of the government null and void if it goes against the Constitution. The courts also protect the Fundamental Rights of citizens through Public Interest Litigation (PIL), where any citizen can approach the court for the public good.