Prelims level : Governance Mains level : GS-II Governance, Social Justice and IR
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Why in News:

  • To address the twin problems of sluggish economic growth and rising unemployment, the government has constituted two Cabinet committees to be chaired by Prime Minister.

Background: / Transaction of Business:

  • The executive works under the Government of India Transaction of Business Rules, 1961.
  • These Rules emerge out of Article 77(3) of the Constitution, which states:
  • “The President shall make rules for the more convenient transaction of the business of the
    Government of India, and for the allocation among Ministers of the said business.”
  • The Rules mandate the minister-in-charge of a department (ministry) to dispose of “all
    business allotted to a department under” him or her.
  • However, “when the subject of a case concerns more than one department”, no decision can be taken “until all such departments have concurred, or, failing such concurrence, a decision thereon has been taken by or under the authority of the Cabinet”.
  • The Prime Minister constitutes Standing Committees of the Cabinet and sets out the specific functions assigned to them. He can add or reduce the number of committees.
  • Many a time, when an activity/agenda of the Government acquires prominence or requires special thrust, a Cabinet Committee may be set up for focused attention.
  • Ad hoc committees of ministers, including Groups of Ministers, may be appointed by the Cabinet or by the Prime Minister for specific matters.
  • A policy paralysis had hit the UPA-II government because it had passed on numerous issues to Groups of Ministers.

Key Committees:

  • Appointments: This Committee decides on all important empanelment and shift of officers serving on Central deputation. This panel makes appointments to posts of
  • The three service chiefs,
  • Director General of Military Operations, Chiefs of all Air and Army Commands,
  • Director General of Defence Intelligence Agency, Scientific Advisor to the Defence Minister,
  • Director General of Armed Forces Medical Services, Director General of Ordnance Factories,
  • Director General of Defence Estates, Controller General of Defence Accounts,
  • Director of Institute for Defence Studies and Analyses, Solicitor-General, Governor of the Reserve Bank of India, Chairman and Members of the Railway Board,
  • Chief Vigilance Officers in Public Sector Undertakings and
  • Secretariat posts of and above the rank of Joint Secretary in the Central Government.


  • The Cabinet Committee on Accommodation determines the guidelines or rules with regard to the allotment of government accommodation. It also takes a call on the allotment of government accommodation to non-eligible persons and organisations as also the rent to be charged from them. It can consider the allotment of accommodation from the General Pool to Members of Parliament. It can consider proposals for shifting existing Central Government Offices to locations outside the capital.

Economic Affairs:

  • The Cabinet Committee on Economic Affairs is supposed to review economic trends, problems and prospects “for evolving a consistent and integrated economic policy”, coordinate all activities requiring policy decisions at the highest level, deal with fixation of prices of agricultural produce and prices of essential commodities.
  • It considers proposals for investment of more than Rs 1,000 crore, deal with industrial licensing policies and review rural development and the Public Distribution System.

Parliamentary Affairs:

  • The Cabinet Committee on Parliamentary Affairs draws the schedule for Parliament sessions and monitors the progress of government business in Parliament.
  • It scrutinises non-government business and decides which official Bills and resolutions are to be presented.

Political Affairs:

  • The Cabinet Committee on Political Affairs addresses problems related to Centre-state relations. It also examines economic and political issues that require a wider perspective but have no internal or external security implications.


  • The Cabinet Committee on Security deals with issues relating to law and order, internal security and policy matters concerning foreign affairs with internal or external security implications. It also goes into economic and political issues related to national security.
  • It considers all cases involving capital defence expenditure more than Rs 1,000 crore.
  • It considers issues related to the Department of Defence Production and the Department of Defence Research and Development, Services Capital Acquisition plans and schemes for procurement of security-related equipment.

The New Panels:

  • The addition of the two committees is indicative of the new focus areas for the government. The goal of both is new jobs.


  • The Cabinet Committee on Investment will “identify key projects required to be implemented on a time-bound basis”, involving investments of Rs 1,000 crore or more, or any other critical projects, as may be specified by it, with regard to infrastructure and manufacturing.
  • It will prescribe time limits for giving requisite approvals and clearances by the ministries concerned in identified sectors. It will also monitor the progress of such projects.


  • The Cabinet Committee on Employment and Skill Development is supposed to provide “direction to all policies, programmes, schemes and initiatives for skill development aimed at increasing the employability of the workforce for effectively meeting the emerging requirements of the rapidly growing economy and mapping the benefits of demographic dividend”.
  • It is required to enhance workforce participation, foster employment growth and identification, and work towards removal of gaps between requirement and availability of skills in various sectors.
  • The panel will set targets for expeditious implementation of all skill development initiatives by the ministries and to periodically review the progress in this regard.
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