6.1. Functions of the Cabinet

1. Policy Formulation: The Cabinet is responsible for policy formulation, both with regard to national and international matters. All policy decisions are taken by consensus and are conveyed by the Prime Minister to the President.

2. Legislative Powers: All the Ministers are Members of Parliament and, thus, participate in legislation. Most of the Bills are introduced in the Parliament by the Ministers and are always passed by the Parliament because of the support they enjoy. The Bills to be introduced by the Ministers are considered by the Cabinet and then approved. The Cabinet may make such changes in the Bills as it thinks are necessary.

3. Financial Powers: The Cabinet is responsible for all expenses of the Government and the sources of revenue to finance the expenditure.

♤ The annual budget prepared by the Finance Minister is controlled by the Cabinet. Here, it may be noted that the budget proposals are kept strictly secret and the Finance Minister takes the Cabinet into confidence only an hour before the introduction of the budget in Parliament. The Cabinet cannot make any changes in the budget. But in the light of discussion on the budget proposals in the Parliament, the Cabinet makes alterations. The alterations, thus made, are subsequently announced by the Finance Minister.

♤ The Cabinet is responsible for approving the economic and fiscal policies and also for taking decisions on the reports submitted by the Finance Commission and the Comptroller and Auditor-General of India.

4. Power of making Appointments: Although the President enjoys vast powers of appointing high dignitaries of the State but in reality these appointments are made by the President on the recommendation of the Cabinet. The advice of the Cabinet is binding on the President and virtually all the functions of the President are performed by this body.

However, the President may ask the Cabinet to reconsider its advice, but only once. The advice given after reconsideration is binding on the President (44th const. Amendment Act).

5. Coordination for smooth functioning: The Cabinet not only co-ordinates the work of various departments but also resolves the inter-departmental disputes. M.V. Pylee calls the

Cabinet “the formulator of national policies, the highest appointing authority, the arbiter of

inter-departmental disputes and the supreme organ of co-ordination in Government”.