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Who will pass Goa budget ?

Cleofato Almeida Coutinho & Prabhakar Timblo

1 March 2002  

Goa, known throughout the world as the tiny paradise on earth, has never lagged behind in carving a special niche in the political firmament of India. The local politicians made the maximum misuse of the anti-defection act and the common man was frustrated with the political instability which engulfed the ‘intellectual’ State during the span of the last five years. The State has also the dubious distinction of the maximum disqualification petitions against the members of the State Assembly gathering dust in the auspicious chamber of the Speaker for nearly twelve months. And now, the IITian Manohar Parrikar pulled the ace by recommending to the Governor to dissolve the State Assembly. This master stroke was an unexpected slap on the face of the neo-saffronites and pulled the rug beneath the 40 Ali Babas couched in the New Assembly Complex.

On receipt of the recommendation from the Council of Ministers, the Governor invoked the powers under Article 174(2)(b) of the Indian Constitution and dissolved the State Assembly. Though, the Governor has been criticized in some quarters for the action, it is our submission that the Governor has exercised the power judiciously and no malafide can be attributed. As a general rule, the Governor is bound by the advice of the Council of Ministers. Though, the position of the Governor is different from that of the President in the sense that the Governor has a discretion, the question of exercising discretion arises in case the advice of the Council of Ministers vacillates against the provisions of law and the constitution. Further, the Governor is not bound by the advice of the Council of Ministers in case the Ministry has lost the majority support or in case a motion of no-confidence has been moved against the Chief Minister and his Council. Here, was a situation wherein the Council of Ministers enjoying the full confidence of the House recommended that the House be dissolved.

In India, the President has followed this convention and has dissolved Lok Sabha in 1971 and 1979 even when the Prime Minister recommending the dissolution did not have confidence of the House. It could be argued that in the year 1971, no alternative was forthcoming and hence the House could not be kept in suspended animation. In 1979, a clear alternative under the leadership of Jagjivan Ram was emerging. However, the President accepted the advice of the Prime Minister who never faced the House. In 1984, the then Prime Minister Rajiv Gandhi went for early elections despite having not completed the full five-year term and there was no threat to his ministry. Obviously, he wanted to cash on the sympathy built in the country after the death of Mrs. Gandhi.

Another issue which is being debated is that the Governor could have exercised the option of sending a report to the President for imposition of Central Rule under Article 356(1) of the Constitution. To our mind, though this option can be exercised, in the instant case, there was nothing on record or otherwise to show the "failure of constitutional machinery". Article 356 is invoked when the existing government has lost majority support and an alternative government cannot be formed or installed. When the majority of the House supports the Council of Ministers, the question of the Governor scouting or hunting for an alternative government does not arise. There are rumors that a ‘group of seven’ was in waiting. However, the Governor is not supposed to peep behind the curtains. Though, over 72 hours have lapsed after the decision, no Minister from the Council of Ministers has said anything to the contrary. No group has approached the Governor expressing no-confidence in the Council headed by Manohar Parrikar.

As per the British Parliamentary conventions, the King would not refuse to grant a dissolution. This convention is dependent on another convention that there would not be an unreasonable demand for a dissolution from the Prime Minister. This implies that the Crown can refuse the demand, if it finds that the demand is unreasonable. As an instance, if after a fresh elections to the Parliament/Assembly, the Prime Minister/Chief Minister after winning the vote of confidence, immediately makes a demand for dissolution, it may be unreasonable. However, considering the backdrop of defections and counter-defections and further the shadow of threatened defections looming in the corridors of Adil Shah palace, it would be fit to consider the demand for dissolution as reasonable. The opposition has been crying hoarse that the BJP has no mandate to rule. The media has been always projecting that the government is seated on the top of the needle.

The President and the Governors are not men of straw, they have or should have the capacity of fair judgement. In such matters, the Courts have no right to interfere, since these are issues of political expediency and subjective satisfaction. Courts may interfere in case of malafide use, not otherwise. Being full aware of the Goan political situation, malafide cannot be imputed. Though, the position of imposition of Presidents’ rule in States has now been made clear by the Bommai judgement, there are no directions or parameters within which a Governor shall act when advised by the Chief Minister to dissolve the House. The President of India had appointed a committee to go into the Governors powers. This committee was of Governors themselves, and the committee had reported as under:

"If a Chief Minister who enjoys majority support advises dissolution, the Governor must accept the advice, but if he advises dissolution after losing the majority, the governor need accept the advice only if the Ministry suffers a defeat on question of major policy and the Chief Minister wishes to appeal to the electorate for a mandate on the policy. In the case of a Chief Minister heading a single party government which has been returned by the electorate in absolute majority, if the ruling party loses its majority because of defection by a few members, and the Chief Minister recommends dissolution so as to enable him to make a fresh appeal to the electorate, the Governor may grant a dissolution…". The report also talks about the Governor taking decision after exploring all options in a multi-party system.

Since the financial year has come to a close, another issue debated is whether the Parliament can pass the State budget since the State is not under Central Rule.

The provisions of the Constitution governing this matter are Articles 248, 249 and 357. Article 357 can be resorted to only if the State is under Presidents’ rule. The budget of a State under the Presidents’ rule is presented to the Lok Sabha and may be passed. For this, the proclamation should be issued under Article 356. The budget is to be presented for the whole year and the vote on account should be taken for a specific period since no one expects the State to be without a popular and representative government. It is very clear that the Lok Sabha has the power to make laws for the State only if the State is under the Central rule. This provision cannot be invoked since Goa is presently not under Presidents’ rule and hence the Parliament is not competent to legislate.

Article 248 deals with the power to make any law including imposing a tax on any item not enumerated in the Concurrent or State List. This is a residuary power. This cannot be invoked to pass the budget or financial bills of a State since this entry stands enumerated in the State List. Article 248 is to deal with unlisted entries or subjects. This is to be done as the ‘last refuge’.

To our mind, for passing of the budget which is of paramount necessity since there cannot be taxation or spending without Parliamentary sanction either the State would have to be brought under Presidents’ Rule or the powers under Article 249 will have to be invoked.

Under Article 249, Parliament has power to legislate in respect of a State subject in the "national interest" provided the Rajya Sabha declares by a resolution supported by two-thirds majority of the members present and voting that it is necessary and expedient that the Parliament should make law. This provision under the Indian Constitution has no parallel in any other constitution and has been incorporated to tide over a temporary situation.

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