Deregulation and Public Consultation in Lawmaking

Deregulation is a key theme in the current Economic Survey and Union Budget, as the government plans to roll back many regulations. This reversal could have been mitigated through effective public consultations from the outset, which act as a balance against overregulation and under-regulation by ensuring well-reasoned and necessary measures.

Role of Citizens in a Democracy

• Citizens have significant rights and responsibilities, including: 
  1. The right to vote and run for public office.
  2. The ability to influence government decisions and policies.
• Public consultation in lawmaking exemplifies citizens' right to influence governance, promoting transparency and trust.

Historical Context and Institutionalization in India

India has a longstanding tradition of public participation dating back to its Constitution's drafting. The Securities and Exchange Board of India (Sebi) pioneered public consultations in 2002. The 2014 policy formalized this practice for draft legislation, and the 2016 Supreme Court judgment recommended institutionalizing stakeholder consultation.

Current Practices and Challenges

The finance minister in the 2023-24 Budget emphasized public consultation in financial regulation. The Competition (Amendment) Act of 2023 mandates public consultation for regulations. Despite these steps, many laws are enacted without consultation, particularly by non-elected regulators.

Evolution and Methodologies of Public Consultation

• Authorities use various methods for consultation, such as online platforms, advisory committees, and workshops.
• Platforms like the OECD’s Practitioner’s Guide and the UNDP’s Public Consultation Index offer methodologies and frameworks for effective stakeholder engagement.

Key Elements of an Effective Consultation Framework

• Clarity: Use well-structured materials with context, rationale, and economic analysis.
• Inclusivity: Reach out to relevant stakeholders using multiple strategies. Example: Ministry of Social Justice's consultation for disabilities policy.
• Transparency: Publish stakeholder submissions and authority responses. Example: Telecom Regulatory Authority of India's digital portal.
• Oversight: Advocate for independent entities to monitor practices and standardize consultation processes.

Advancements and Recommendations

• Authorities are increasingly using platforms like MyGov for ongoing public engagement.
• Regulators like the IBBI allow stakeholders to propose new regulations or amendments anytime.
• Codifying practices ensures accountability; non-compliance should render legislation void with penalties.

These practices highlight the importance of building capacity and creating incentives within the ecosystem to facilitate rigorous public consultations, aiming to enhance participatory governance and improve legislative outcomes.